The client contacted Fidelis Law Firm seeking legal support in connection with a transaction identified within bankruptcy proceedings. It was discovered that prior to being declared bankrupt, real estate belonging to the debtor was transferred as an investment into the equity capital of another company at a price significantly below its market value. The transaction harmed the property interests of both the debtor and its creditors.
The client’s goal was to recover the difference between the actual market value of the property and its assessed value for the investment. This difference amounted to around 187.6 million Armenian Drams (AMD), making the outcome of the case essential for protecting property interests in the bankruptcy context.
Upon taking on the case, our lawyers examined the terms of the transaction, the timeframe of its execution, data regarding the property’s value, and its financial implications. The factual circumstances were evaluated under the relevant provisions of the RA Law “On Bankruptcy” to establish the legal grounds for the recovery claim and assemble the necessary supporting evidence.
Based on this analysis, our team developed a litigation strategy and filed a claim with the court demanding monetary recovery. The lawsuit sought to recover the difference between the market value of the transferred property and its assessed valuation in the equity capital.
During judicial proceedings, our lawyers presented the evidence and arguments supporting the claim. Specifically, it was established that the transaction had been executed within three years prior to the debtor being declared bankrupt, and that the transfer terms harmed the interests of the debtor and its creditors. Special attention was given to substantiating the market value of the property and the calculated amount subject to recovery.
The court fully granted the lawsuit, deciding to recover 187,619,000 AMD from the defendant company in favor of the client. The defendant was also ordered to pay state duties exceeding 5.6 million AMD.
This case demonstrates the critical importance of reviewing pre-bankruptcy transactions to safeguard the property interests of both debtors and creditors. Proper substantiation of transaction terms, property value, and the claimed amount enabled complete satisfaction of the lawsuit.
If you encounter issues involving property transfers or inadequate property valuation within bankruptcy proceedings, our lawyers stand ready to review the transaction details, evaluate options for protecting your property interests and legal grounds for filing a claim, and represent your interests in court.