Hillmont Partners and Avellum have successfully represented Argentem Creek Partners and Innovatus Capital Partners before the Supreme Court of Ukraine, resulting in a confirmation that a corporate agreement provided as security for a loan does not create creditor interest in the debtor under the amended Bankruptcy Code.
According to Hillmont Partners, Argentem Creek Partners and Innovatus Capital Partners extended a USD 95 million facility to GNT Group, secured by, among other things, assets and a mortgage over Olimpex Coupe International LLC. Following the default, Madison Pacific Trust Limited, as credit agent, initiated bankruptcy proceedings against Olimpex. Opponents sought to strip Madison of voting rights at creditors’ meetings by claiming it was an “interested” creditor solely because a corporate agreement had been concluded to secure the loan.
As the firm reports, the Supreme Court rejected that argument, holding that the corporate agreement functioned only as a security instrument and did not grant the creditor rights of a management body or otherwise create an “interest” in the debtor.
The Hillmont Partners team included Managing Partner James Hart, Senior Partners Andrii Nyzhnyi and Valentyn Zasukha, and Partner Andrian Artsishevsky.
The Avellum team included Senior Partner Kostiantyn Likarchuk and Partner Vadim Medvedev.
