The Economic Collegium considered for the first time a case concerning the bankruptcy of a foreign company in the Russian Federation. The cassation appeal was filed after three court instances refused to allow a Cypriot company to initiate a bankruptcy case in Russia against another Cypriot company.

As a result, the Supreme Court granted the cassation appeal of AMN Commercial Property Advisors Ltd, whose interests were represented by Lidia Solodovnikova, Counsel, Co-Head of the Bankruptcy and Restructuring Practice of LEVEL Legal Services, and returned the case to the court of first instance for a new hearing.

Among the arguments that contributed to the victory, Lidia stated that the Russian arbitration court was competent to initiate bankruptcy proceedings against the estate of a foreign company because it had a close connection with Russia - the company was operating and had its only assets in Russia. The lawyer also noted that a foreign creditor has the same rights as a Russian creditor, so it is inadmissible to deny the Cypriot company AMN Commercial Property Advisors Ltd the right to initiate bankruptcy proceedings against the debtor's estate located in Russia.

"The judicial act may become fundamental for the development of domestic bankruptcy jurisprudence and a breakthrough for the development of cross-border bankruptcy. We will wait for the Supreme Court's judicial act in full," notes Lidia Solodovnikova, Counsel, Co-Head of Bankruptcy and Restructuring Practice at LEVEL Legal Services.