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Ekaterina Mikhalskaya speaks at the Forbes conference «Bankruptcy, Restructuring, Corporate Conflicts: Landmark Cases and Lawsuits in Modern Russia»

On April 16, Ekaterina Mikhalskaya, Managing Partner of Prime Advice, took part in the conference «Bankruptcy, Restructuring, Corporate Conflicts: Landmark Cases and Lawsuits in Modern Russia» organized by Forbes Congress in Moscow. Ekaterina spoke at the session "Bankruptcy of Individuals and Loan Guarantors", where participants discussed high-profile personal bankruptcy cases and legal aspects related to these bankruptcies. The topic of the speech was "And you are Ariadne, and the thread is working, but Theseus could not cope with the excitement: why there is more psychology than law in the bankruptcy of physicists."

According to her, the bankruptcy war involves the development and implementation of strategies by both sides of the process, and this does not happen without the help of consultants:

Common advice to the Debtor: divorce, hide assets, live in another jurisdiction, and so on. Mirror counter-actions for the Lender: challenge everything you can, attack on all fronts, apply for a subsidy, do not forget about criminal liability. Purely legal mechanics, in which there is no place for emotions?

In one case, the consultants did not keep the Debtor from inciting a war with creditors, in which everything went wrong, and not only money, but also health quickly ended, at the exit of a terminally ill bankrupt Debtor spent the last years of his life fighting with creditors and left an unfinished war to his heirs.

In another case, after a crisis occurred in the company, both consultants and media experts unanimously agreed that the Debtor is waiting for an obvious path to bankruptcy. However, the Debtor found the strength to resist the pressure and put everyone at the same negotiating table. But there are also third, fourth, fifth, etc. cases that demonstrate to us that no matter how obvious the general legal scenarios are, there are emotions in all of this that these scenarios violate. Will it be possible to ignore them if the goal is to achieve an effective result?

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Photo by Forbes Congress