Interlegal preserved 2,000,000 USD for their Client

Interlegal preserved 2,000,000 USD for their Client

A large Asian company, wishing to buy a large volume of unrefined sunflower oil from the Ukrainian supplier, applied to Interlegal. The supplier offered an attractive price and regular deliveries directly from the manufacturing plant during the following year.

The Buyer, having no experience of trading with Ukrainian suppliers, wanted to make sure that the Seller is a reliable company that will fulfill its promises, while the contract will be concluded in accordance with all law requirements.

We carried out due diligence of the Seller, whereunder it turned out that a non-resident company was engaged in transaction, having no production facilities in Ukraine, submitting zero financial statements, conducting no business activity in its residence country and having no reputation at the market.

It is not a secret that non-resident companies are often engaged in trade, in order to minimize financial risks and tax burden. Therefore, the Buyer decided to hold on negotiations with the supplier.

The Seller provided draft contract presuming partial advance payment, without any guarantees for the Buyer. Interlegal lawyers actively participated in arranging terms of the supply agreement and offered for the parties several mechanisms to defend the Buyer’s interests. However, the Seller did not agree to the proposed options.

In the course of negotiations, Interlegal lawyers found out that neither the Seller nor the purchasing plant had the goods to be delivered on a monthly basis after signing the contract.

Having information that the probability to perform the contract is extremely small, as well as that there are neither mechanisms aimed to defend the bona fide buyer nor actual opportunity to recover the probable losses, the Buyer rejected the transaction.

Due to legal support of Interlegal lawyers, the Buyer could preserve over 2,000,000 USD.

Interlegal law team, namely senior associate Karyna Gorovaya, associate attorney Irina Bushuyeva, lawyer Ganna Liakhova, jointly with Bulgarian partner Mladen Popov, led the case.