CASE / INSOLVENCY OF SOLE PROPRIETORS
Insolvency of a sole proprietor after a pandemic support loan
A pandemic business support loan turned into a debt the entrepreneur could no longer service. We analysed the structure of his obligations, prepared the petition for his insolvency and ran the case before the Arbitrazh Court of the City of Moscow.
- Headline figure
- А40-176655/2020 sole proprietor insolvency case
- Practice
- Insolvency of sole proprietors
- Year
- 2020
The task
During the economically difficult period caused by the coronavirus pandemic, a sole proprietor took out a loan on special terms — to keep the business going and to pay his employees' wages. Because of a dramatic fall in income he was unable to meet those loan obligations on time.
What we did
- Analysed the documents provided by the client.
- Prepared the petition to have the sole proprietor declared insolvent (bankrupt).
- Filed the petition with the Arbitrazh Court of the City of Moscow.
The result
The Arbitrazh Court of the City of Moscow declared the entrepreneur insolvent (bankrupt) and opened a six-month procedure for the realisation of his assets. Case No. А40-176655/2020.
This description reflects the result in a particular matter on particular facts. A result in one case neither guarantees nor implies a similar result in another.
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