In this article, Adam Stein-Sapir of Pioneer Funding Group provides insights into the bankruptcy proceedings of Vneshprombank.
Summary
Vneshprombank, a Russian bank catering to VIPs, has initiated a U.S. bankruptcy proceeding to shield its New York real estate holdings from claims amidst an investigation into embezzlement by its head, Larisa Markus. Markus is accused of stealing approximately $13 million and investing it in Manhattan condos through various corporate entities. The Chapter 15 bankruptcy filing aims to protect these assets for the benefit of all creditors during the ongoing Russian investigation into fraudulent activities involving Markus and her brother, Grigorii Bedzhamov. Adam Stein-Sapir, a bankruptcy expert from Pioneer Funding Group, commented on the strategy to ensure equitable distribution of the bank’s assets among creditors.
- Vneshprombank filed for Chapter 15 bankruptcy to safeguard its NYC real estate from seizure.
- Larisa Markus, the bank’s head, allegedly embezzled $13 million to purchase luxury condos.
- The bankruptcy filing serves to maintain the real estate for all creditors during the fraud investigation.
Q&A
What is Chapter 15 bankruptcy?
Chapter 15 bankruptcy is a legal process that provides a mechanism for dealing with insolvency cases involving debtors, assets, claimants, and other parties of interest involving more than one country. This type of bankruptcy is designed to promote cooperation between U.S. courts and parties of interest from other countries. For more information on bankruptcy proceedings, Pioneer Funding LLC offers a comprehensive overview.
How does bankruptcy protect a company’s assets from seizure?
Bankruptcy can protect a company’s assets from seizure by providing an automatic stay, which halts all collection activities, including lawsuits and foreclosures, against the debtor’s property. This stay ensures that the assets are preserved while the bankruptcy court determines how to distribute them among creditors. For those interested in selling their bankruptcy claims, Pioneer Funding LLC provides guidance on the process.
What happens to creditors in a bankruptcy case like Vneshprombank’s?
In a bankruptcy case such as Vneshprombank’s, creditors are typically required to file proof of their claims with the bankruptcy court. The court then determines the validity and priority of these claims. Unsecured creditors often recover a fraction of what is owed to them, if anything, after secured creditors and administrative expenses are paid. Creditors may consider selling their claims to trade claim buyers to mitigate the risk of low or delayed recovery. For more details on this option, creditors can refer to Pioneer Funding LLC’s guide on selling bankruptcy claims.
