PRAGNUM collects a multi-million dollar debt from a company that had 129 enforcement proceedings opened against it

A client contacted PRAGNUM regarding the legalisation and execution of the ICAC decision on the recovery of damages and interest per annum from a large company based in Sumy. Having analysed the debtor (3 attempts to enter bankruptcy proceedings, 129 enforcement proceedings), our initial enthusiasm faded a little, since the client came to us on the recommendation of another of our regular clients, for whom we have won a dozen major disputes over the past 5 years…

Without getting bogged down by the trials of the project, let’s say that, although the debtor “had an in” with the local executive service, we managed to recover damages in full, starting a full-scale war (criminal proceedings and court decisions on the inaction of the state executor) both with the debtor and with state executors.

We are especially proud, however, that PRAGNUM lawyers were among the first in Ukraine (perhaps the very first) to obtain a decision from all courts on the legality of collecting interest per annum based on decisions of the ICAC that was different from the amount established by Article 625 of the Civil Code of Ukraine, for an amount in foreign currency for the duration of the procedure for executing a court decision. Colleagues specialising in arbitration know how hopeless this issue was... before us. 

Following this project, the Ministry of Justice of Ukraine initiated an official investigation and disciplinary proceedings against the state executor, and its results are unlikely to please the local officials who threw obstacles in our client’s path.

Even if the debtor is obviously plagued with lawsuits and enforcement proceedings, we recommend against simply giving up on the possibility of repaying the debt. Often all new lenders think this way, which allows only those most aggressive to achieve their goals.