On March 6, the Arbitration Court of the Rostov Region rejected the petition filed by the non-core assets bank Trust and by Interregional Insolvency Fund No. 25 of the Rostov Region regarding the initiation of bankruptcy proceedings against LLC Azov-Don Development Corporation (ADDC). The decision was published on the court’s website for public access.
Representatives of the Trust stress that this ruling marks the thirteenth such refusal, arguing that the absence of bankruptcy measures has allowed ADDC to accumulate debts to creditors over time.
The bank notes that ADDC’s obligation to the budget already exceeds 22 million rubles and continues to rise, while the amount owed to Trust itself surpasses 400 million rubles.
It is recalled that Interregional Insolvency Fund No. 25 of the Rostov Region submitted its initial bankruptcy petition with the Arbitration Court of the Rostov Region back in January 2020, seeking to declare ADDC bankrupt.
As a result, the process has been underway for more than three years, which is more than five times the statutory period allowed from the creditor’s application receipt to declare a debtor bankrupt.
In September 2021, the creditors’ meeting for ADDC was held. Based on the voting results, the decision was made to file for bankruptcy so that ADDC’s property could be sold under court control, with the resulting proceeds directed toward repayment of the debts to creditors.
Nevertheless, the debtor requested postponement of the hearings, and the court granted several adjournments. The proceedings have now been rescheduled for April 12.
Representatives of the Trust reiterate that the bank is prepared to pursue a settlement, and it will persist in seeking bankruptcy declarations until its claims are satisfied. The bank emphasizes its commitment to achieving a resolution that would address the outstanding liabilities to its creditors and to the budget, given the growing financial obligations tied to ADDC’s activities.
According to court filings and corroborating statements from the involved parties, the overarching issue centers on balancing the debtor’s ability to reorganize or liquidate assets with the creditors’ need for timely recovery of outstanding sums. This ongoing dispute highlights the persistent friction often observed in regional bankruptcy cases, where petitions are repeatedly considered yet repeatedly denied, prolonging the recovery timeline for creditors while leaving certain liabilities unaddressed for extended periods. Court observers note that such patterns can influence future interactions among lenders, debtors, and regulatory bodies, especially when large sums are at stake and the public budget is affected.
Industry observers and legal professionals continue to monitor developments, including the court’s forthcoming April 12 session, which is expected to clarify whether ADDC will proceed with any form of restructuring, asset disposition, or alternative arrangements. The parties’ positions suggest a continued tension between creditor protection and the debtor’s prospects for stabilizing operations, a common dynamic in regional insolvency matters.
In this context, the Trust maintains its stance that bankruptcy declarations serve as essential mechanisms to enforce creditor rights and to ensure orderly liquidation or reorganization pathways, while ADDC’s representatives advocate for measures that could allow for business continuity or negotiated settlements outside of court-ordered bankruptcy processes. The situation underscores the importance of timely legal actions and transparent reporting to prevent further escalation of arrears to both budget authorities and private lenders.
Overall, the case illustrates how procedural delays and repeated court adjournments can shape the financial landscape for a referenced entity, influencing creditor strategies and the possible involvement of public funds in the resolution process. The outcome of the April 12 hearing will be closely watched by stakeholders across the regional market, with implications for the handling of similar disputes in the Rostov region and beyond.
Source materials are available on the court’s official platform, where current filings and schedules are published for public review.