15 February 2007
JSC Arkhangelsk Trawl Fleet financial recovery proceedings successfully completed

February 15, 2007, Arkhangelsk. Today the Arbitration Court of Arkhangelsk Region passed an award terminating the bankruptcy proceedings with regard to JSC Arkhangelsk Trawl Fleet (ATF). The successful completion of financial recovery procedure has resulted from the efforts of the Russian Federation as the owner, the management and staff of ATF and the lawyers of Egorov, Puginsky, Afanasiev & Partners who acted for the Russian Federation and ATF in the bankruptcy proceedings.

Today the Arbitration Court of Arkhangelsk Region reviewed the question of terminating the bankruptcy proceedings with regard to JSC Arkhangelsk Trawl Fleet and passed an award releasing the company from insolvency. Thus ATF, a company fully owned by the Russian Federation represented by the Federal Property Management Agency (Rosimuschestvo) became the first Russian fishing enterprise to have successfully completed the financial recovery procedure.

The ATF bankruptcy proceedings were initiated in 2004 and have been going on for over three years. After all private and public creditors had been satisfied the insolvency manager prepared a Financial recovery procedure termination report. Upon its review today the Arkhangelsk court passed an award terminating the bankruptcy proceedings.

The financial recovery procedure provided for in the Federal Law “On insolvency (bankruptcy)” has been very rarely used in Russian corporate practice. The more unique is its successful completion. Normally, the financial recovery procedure ends with introduction of more severe stages of bankruptcy, which mostly result in winding up of a company. The bankruptcy case, with the Russian Federation and ATF represented by Egorov, Puginsky, Afanasiev & Partners, was in many ways a groundbreaking event for the Russian legal practice.

“Salvation of the Northern Russia’s oldest fishery has become possible thanks to a highly professional job done by the Federal Property Management Agency and the management of JSC Arkhangelsk Trawl Fleet and personally general director Y. Nikulin. We thank our clients, ATF and Rosimuschestvo for an opportunity to contribute to protecting the government property from the raiders’ ambition. A consistent effort allowed us to give the company a second chance, preserving jobs in a business area traditionally valued in Russia” – commented Dmitry Afanasiev, member of the Partners’ Committee at Egorov, Puginsky, Afanasiev & Partners.