Ex-employees of the Russian division of the American Oracle corporation are trying to force the court to return 50 million rubles of bonuses that they received in 2022. The amount may increase — it is planned to increase the bankruptcy estate during bankruptcies at its expense. Read the comment of Acsour experts on the high-profile court case of the bankrupt company.
Oracle: bankruptcy and bankruptcy proceedings
The Russian division of the American Oracle Corporation specialized in the development and marketing of computer hardware systems and corporate software products. The company was quite successful in the Russian market, but in March 2022 Oracle, like many other American companies, announced the suspension of its activities in Russia, and its local division stopped providing technical support services to its contractors and renounced contracts. Acsour experts note that, according to Russian law, the company was obliged to return all outstanding advances.
In June 2022, the IT company Krok filed a bankruptcy lawsuit against Oracle Computer Equipment: this lawsuit was the first of many lawsuits that led to the company's recognition as bankrupt in August 2023 and the opening of bankruptcy proceedings. The total amount of debt owed to creditors exceeded 1.25 billion rubles.
Acsour experts remind that bankruptcy proceedings are the final bankruptcy procedure of a debtor commercial organization, which is necessary to satisfy creditors' claims.
The Russian division of the American Oracle Corporation specialized in the development and marketing of computer hardware systems and corporate software products. The company was quite successful in the Russian market, but in March 2022 Oracle, like many other American companies, announced the suspension of its activities in Russia, and its local division stopped providing technical support services to its contractors and renounced contracts. Acsour experts note that, according to Russian law, the company was obliged to return all outstanding advances.
In June 2022, the IT company Krok filed a bankruptcy lawsuit against Oracle Computer Equipment: this lawsuit was the first of many lawsuits that led to the company's recognition as bankrupt in August 2023 and the opening of bankruptcy proceedings. The total amount of debt owed to creditors exceeded 1.25 billion rubles.
Acsour experts remind that bankruptcy proceedings are the final bankruptcy procedure of a debtor commercial organization, which is necessary to satisfy creditors' claims.
Bankruptcy of the company and bonuses of ex-employees: what is the connection?
he opening of bankruptcy proceedings was the reason for an attempt to oblige former employees to return bonuses that could have become part of the competitive mass: So, in August 2024, several lawsuits were sent to the court, the total amount of which amounted to 50 million rubles.
Bonuses for such a significant amount were paid to employees on the eve of bankruptcy, which gives reason to believe that the company intentionally overestimated them to reduce the amount of bankruptcy proceedings. Thus, at the moment, the main task of the bankruptcy trustee is to collect evidence that these payments, their conditions differed from the previously accepted practice, and this was the withdrawal of funds in the pre-bankruptcy period.
Acsour experts note that it will not be easy to collect evidence if the company has a provision on the payment of bonuses, according to which accruals were made to employees.
Conclusion
Reducing the competitive mass due to high premiums is a common practice that can lead to challenging these awards, Acsour lawyers say. However, as practice shows, former employees have good immunity in court cases that relate to the invalidation of transactions within the framework of bankruptcy.
Acsour experts note that running and closing a business in Russia involves a number of risks, both reputational and financial. For the correct liquidation of a legal entity, contact Acsour: our specialists have extensive experience in the field of termination of companies and will be glad to help your business.
Bonuses for such a significant amount were paid to employees on the eve of bankruptcy, which gives reason to believe that the company intentionally overestimated them to reduce the amount of bankruptcy proceedings. Thus, at the moment, the main task of the bankruptcy trustee is to collect evidence that these payments, their conditions differed from the previously accepted practice, and this was the withdrawal of funds in the pre-bankruptcy period.
Acsour experts note that it will not be easy to collect evidence if the company has a provision on the payment of bonuses, according to which accruals were made to employees.
Conclusion
Reducing the competitive mass due to high premiums is a common practice that can lead to challenging these awards, Acsour lawyers say. However, as practice shows, former employees have good immunity in court cases that relate to the invalidation of transactions within the framework of bankruptcy.
Acsour experts note that running and closing a business in Russia involves a number of risks, both reputational and financial. For the correct liquidation of a legal entity, contact Acsour: our specialists have extensive experience in the field of termination of companies and will be glad to help your business.
