Advising a baltic bank on settlement options for a russian lender

KIAP team conducted due diligence on the documentation of the loan issued to the Russian warehouse complex and checked the validity of the surety in the form of the pledge of real estate (warehouses and land plots), pledge of shares in LLC and guarantee.

Based on the information acquired in the course of due diligence, a debt settlement strategy was developed to address the risk of the borrower’s default. This strategy included all possible options to protect the bank’s interests under Russian law, including, but not limited to, debiting from the borrower’s bank accounts, foreclosure on pledged property, and bankruptcy of the borrower.

Timely and comprehensive due diligence allowed the bank to address existing documentation deficiencies that may have had a negative impact on loan repayment prospects and collateral foreclosure prospects.


Roman Suslov, Ekaterina Spakhova