Parties Amend Contract Terms before Bankruptcy. How to Challenge the Amendments?
Alena Ermolenko, Head of Practice at FBK Legal, and Ivan Zvonkov, a lawyer working for the firm, have prepared a publication about grounds for challenging contractual terms amended before bankruptcy. The authors explain which provisions of supplementary agreements to business contracts entered into during the suspect period make it possible to challenge them during bankruptcy proceedings, which circumstances affect court decisions and which nuances should be taken into account.
“The key moment that courts consider when supplementary contracts are challenged during bankruptcy proceedings is whether the amendments are reasonable from the economic perspective. If the courts believe that they are unreasonable, they are likely to invalidate the supplementary agreement.
But this criterion is subjective and courts often come to different conclusions in similar circumstances,” the article says.
You can read the full text of the publication in Russian using this link subject to registration.