DEBT COLLECTION FROM A FOREIGN INVESTMENT FUND

DEBT COLLECTION FROM A FOREIGN INVESTMENT FUND

Background

PRINCIPAL DEBTOR:

A Cyprus holding company specializing in the construction of solar energy facilities in Japan and indirectly owning production assets

DEBT AMOUNT - 40 million euros

PARTICIPATION INTEREST in the share capital of the Holding Company is 40% of the authorized capital.

DEFAULT on obligations stipulated by the agreement on the mandatory repurchase of shares of the Holding Company at a fixed value

 

Task assigned

  • To ensure the fulfillment of the Debtor's obligations to repurchase the Customer's shares at the previously fixed value

Methods of implementation

  • Injunctive remedies have been obtained in a foreign jurisdiction
    In a foreign jurisdiction, injunctive remedies have been obtained to seize production assets that are in the indirect ownership of a Holding Company.
  • Enforcement of the injunctive remedies obtained has been ensured
    Enforcement of the injunctive remedies obtained in Cyprus, the Netherlands, Germany and Japan has been ensured.
  • Documents received
    Documents containing information about the ultimate beneficiary of the  company, which is the majority shareholder of the Holding Company, have been received
  • Cash flow information has been received
    Information on cash flow on current accounts opened with foreign banks has been received.
  • A transaction analysis was carried out
    The analysis of transactions on the settlement accounts of the Holding Company was carried out and the facts of illegal transfer of funds to the accounts of the companies controlled by the majority shareholders were revealed.
  • An agreement on voluntary fulfillment of obligations has been reached
    An agreement has been reached on the voluntary fulfillment of  obligations by the majority shareholder of the Holding Company to the  Customer, subject to the refusal of civil and criminal prosecution of  the beneficiary of the majority company.

Outcome

The majority shareholder has fulfilled its obligations to repay the debt on the share repurchase in full.