RAUD on minimization of bankruptcy risk for construction companies

The construction industry that has prominently suffered from crisis effects in economy and undergoes a complicated transition to self regulation faces a wide range of problems to be resolved.
The issues of legal regulation of the construction industry, current problems and ways of their resolution were discussed at the seminar organized by RAUD Law Company, the Institute for Enterprise Issues, LLC and self-regulated organization NP “Saint Petersburg Builders Association” that took place in the Agency for Direct Investments on June 3, 2010.
RAUD, LLC was represented at the seminar by the company senior partner Tatyana Piletskaya. Her speech was about possibilities of bankruptcy risk minimization for construction companies. According to T. Piletskaya, lawyers of law companies must analyze companies’ activities in terms of bankruptcy risks appearance as well as prevent incurrence of accounts payable.
The senior partner of RAUD pointed out that at the stage of contracts conclusion it is important to search for information about a business partner. In this regard monitoring of the Arbitration court official website would be useful to see in which disputes the supposed partner is involved and whether it has signs of bankruptcy. Besides, when concluding a contract one shall use such judicial tools as inclusion of a provision on pre-trial (complaint procedure, mediation) and trial (arbitration court) dispute settlement. At the stage of contract execution, as T. Piletskaya mentioned, it is reasonable to perform an economical and legal analysis of possible or existing incurrence of credit possibility.
At the stage of pre-trial settlement of a dispute with the creditor the following measures would minimize the bankruptcy risk: loan restructuring, observance of restructuring priority in terms of possible contestation in case of bankruptcy procedures implementation for the company. Besides, as T. Piletskaya said, at this stage it is also important to follow up the information on the counterpart on the Arbitration court website.
And after all T. Piletskaya advised to hold negotiations and conciliation procedures at the stage of trial settlement or at the stage of enforcement proceedings in order to settle amicably changing of the terms of liabilities fulfillment.

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