LEGAL SOLUTIONS

To be mentioned, these investigations are conducted under the provisions of applicable law. Therefore, any information obtained can be used in court or in prosecution processes.

Asset Transfer Analysis 

Assets transfer or asset ringfencing, i.e. a transfer of assets from the debtor which deteriorates the rights of other creditors or law can be challenged in Russian court and is prosecuted by criminal law in certain cases. 

Asset protection is one of the key expertise of Ligerion. In our work we specialize in acting for creditors to prevent illegal or improper transfer of assets from a company-debtor or physical debtor. Following the initial investigations stage, we are in position to indicate, where the rights of the creditor can meet certain risk of illegal asset transfer or improper operations on the side of debtor and perform the debt recovery by all possible means provided by law. We facilitate negotiations with clients and deploy procedures to protect the rights of the creditor, starting from pre-court dispute resolution, arbitral procedures, protection measures, criminal prosecution, enforcement and monetary or “in kind” recovery. 

In case where a client meets aggressive or unjustified attacks from its counteragents, we can act for the clients with a view to prevent illegal alienation of client’s asset. Such illegal attacks, which can be in fact a raiders attack, are not a rare situation in the market practice, therefore it is quite important that the relevant legal defense is timely set up. To be mentioned, the current Russian legislative practice has been developing for the last few years to support the proper legal standing of business to prevent raiders or similar attacks from the malevolent counteragents/creditors. 

Information On Subsidiaries, Holding Companies and Key Managament Persons
Prior to conducting debt recovery operations, we collect information on subsidiaries and holding companies of a debtor. Once such information is obtained, we can estimate, whether recovery can be made by enforcing the assets operated by subsidiaries. In certain cases, execution can be levied on the holding companies which may be liable for the obligations of its subsidiaries. The same relates to key management persons, especially in cases of bankruptcy or where the bankruptcy procedures are unavoidable. These measures facilitate the general recovery procedure and support the recovery plan with extra options. 

Soft Collection
Soft collection – is a variety of remotely performed procedures aimed at negotiating with a debtor and debt recovery within the framework of collection procedures. Such process involves negotiating with client the amount of its indebtedness, possibly rescheduling or discounting thereof, should this rescheduling or discounting be within the thresholds agreed with the creditor and collector in advance. Ligerion has a network of negotiators who take this process forward on the territory of Russia and CIS. In essence, soft collection comprises three steps:

• debt formalization (acknowledgment of the amount of indebtedness)
• debt optimization (finding the methods of proper debt discharging)
• debt recovery (deployment of the debt recovery scheme)

Should one of these stages fail on the side of a debtor, hard collection procedures commence. 

Hard Collection
To contrary to soft collection, hard collection involves all measures of debt recovery provided by law, as well as physical meetings with a debtor. This involves arbitral procedures, protection measures, enforcement and monetary or “in kind” recovery. It is not seldom that a debtor reverts to the debt optimization negotiations once hard collection has started or is at the well-developed stage. At all stages we consult with our client advising whether one or another stage should be suspended. 

At a hard collection stage we can be involved in the bankruptcy of a debtor. This may be a lengthy procedure, however can be quite effective, if it is preliminary structured and is performed in the manner provided by law. Ligerion has a broad experience in representing the rights of creditors in the bankruptcy procedures and has advised on this issue in the large bankruptcy processes in Russia. 

Hard collection stage is concluded at the moment of monetary or “in kind” recovery. To be mentioned, as a general principle of collection work, Ligerion withholds its collector commission at cashflow compensation, and only in very rare cases obtain an advance fee.