Russian court is asked to hold Daewoo manufacturers liable as subsidiaries

The amount of the requirements for them is estimated at 22 billion rubles.

The “Erae CS Co” company demands that the debtor’s controlling persons be held to secondary liability in the insolvency case of the “UzDAEWOOavto-Voronezh” automobile distributor. The Voronezh Oblast Court of Justice ruling on the adoption of the corresponding statement appeared in the Commercial Case File on October 8 (No. A14-6488/2016), and “Prime” paid attention to it.

As it follows from the document, the Russian subsidiary of the South Korean “Erae CS Co” requires to hold to secondary liability:

∙            “General Motors Uzbekistan” JSC.
∙             Uzbek joint-stock corporation “Uzavtosanoat”.
∙             Avtosanoat Invest.
∙             Three individuals, whose full names coincide with the names of the former CEOs of “UzDAEWOOavto-Voronezh”: Yuri Kan, Khasanbek Muzaffarov and Igor Davydov.

“Erae CS Co” appealed with its statement in early September, but the court left the document without motion. In early October, the company provided additional evidence, after which the Judge Elena Gladneva accepted the statement and scheduled a preliminary meeting for it on April 13, 2020.

According to Konstantin Ivanchin, a partner of Inmar Legal Ltd. (representing the interests of “Erae CS Co”), the amount of the secondary liability is now estimated at 22 billion rubles. He noted that the debt to the Korean subsidiary arose from the dealership agreement of 2015. “Erae CS Co” transferred $ 10 million to the distributor, but “UzDAEWOOavto-Voronezh” did not deliver the cars.
The court declared “UzDAEWOOavto-Voronezh” insolvent in April 2017. The distributor supplied Daewoo and Ravon cars manufactured by “General Motors Uzbekistan” to Russia. According to Prime, the sole shareholder of “UzDAEWOOavto-Voronezh” is “Avtosanoat Invest”, which is owned by “Uzavtosanoat”.

“Erae CS Co” insists that the actions of these companies and three ex-executives of the distributor led the company to bankruptcy. In addition, according to the creditor, they already created a “friendly” debt of “UzDAEWOOavto-Voronezh” company in the insolvency process to the detriment of the independent creditors` interests. In particular, as the agency notes, the debt of the Voronezh company to “General Motors Uzbekistan” exceeds 9.5 billion rubles, which is about 40% of the entire list of creditors.