The debtor company received government subsidies for developing innovative products (Implants), but R&D failed to produce the desired results, and the company could not start selling products to repay subsidies and borrowed funds from the parent company.
The complexity of the project was that the Trustee was both an ordinary employee of the debtor company and a majority participant in the debtor's key R&D contractor. The entire project and its realization actually depended on the performance of this contractor. The Law Office's attorneys were able to demonstrate that the Trustee's role was merely to supervise the business activities of the contractor, which had purchased expensive equipment at the debtor's expense. At the same time, the Principal did not actually control the contractor company and was not its beneficiary.
RussianLegal undertook extensive work complicated by the analysis of voluminous accounting and corporate documents, technical documentation in relation to R&D and criminal case files. The first instance proceedings lasted almost a year, during which time the Law Office was able to build an effective defense strategy that contributed to a successful outcome.
In the end, the RussianLegal team managed to prove to the court that the Principal was not a controlling person of the debtor and that it did not benefit from the project in any way, even as a majority shareholder of the main contractor.
