The debtor’s account arrest as the guarantee of debt recovery

A client – large ship repair enterprise applied to Interlegal for legal defense upon debt recovery for use of infrastructure.

Following the forced return of funds, the debtor – shipowner tried to contest the court decision in respect of penalty sanctions (3% per annum) and inflation costs. The disputed amount made up tens thousands USD accrued for a year and a half.

The court of appeal accepted Interlegal lawyers’ arguments and supported the first instance court position.

An interesting fact is that the debtor has paid penalty sanctions within two weeks after making a court order. It confirms once more efficiency of the debtor’s account arrest in the framework of enforcement proceedings, which may cause cessation of the business activity and has a large impact on the intensity of debt recovery.

Interlegal lawyer Mikhail Selivanov and junior lawyer Igor Derus, under general supervision of the senior lawyer Karyna Gorovaya, led the case.