Lawyer Pavel PetrovLawyer Pavel Petrov

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Third-Party Payment of Creditor Claims in Russian Bankruptcy

In briefA shareholder, owner of a unitary enterprise or another third party may satisfy all registered claims against a Russian corporate debtor in order to terminate the bankruptcy case. Article 113 applies during external administration and Article 125 during liquidation. The payer cannot select friendly creditors: the collective mechanism requires full payment of the register through a notice of intention, a court order and a special account or notarial deposit.

Entire register

Principal, interest, penalties and other registered sanctions must be paid.

Court supervision

A notice of intention comes first; the court then sets the period and method.

Termination objective

After full payment is confirmed, the court considers ending the case.

When the mechanism applies

StageProvisionScope
External administrationArticle 113All claims entered in the register
LiquidationArticle 125All registered claims under Article 113
Mandatory public payments in liquidationArticle 129.1All registered mandatory-payment claims
Ordinary payment of one debtCivil Code and special rulesDoes not replace the Articles 113/125 collective process

Notice-of-intention procedure

  1. Obtain the current register and calculate the full amount.
  2. File the notice with the arbitrazh court and practitioner.
  3. Identify the payer, method and a period no longer than twenty days after the order.
  4. Await review; the statute provides fourteen business days.
  5. Fund the debtor’s special bank account or a notarial deposit.
  6. Submit proof and obtain an order recognising the claims as paid.

Multiple notices are considered in filing order. The special account is used only for registered-creditor payment and cannot be debited for other obligations.

What the amount includes

Article 113 covers every entered claim, including penalties, fines, default charges, interest and other sanctions. Current claims and moratorium interest do not automatically form part of the Articles 113/125 registered total, but they do not disappear and require separate treatment.

Do not confuse the register with current claims or moratorium interest.

Selective payment is risky. Paying only affiliated or supportive creditors may breach equality and priority and trigger preference or subordination disputes.

What does the payer receive?

Providing funds does not automatically transfer every satisfied claim to the payer. As a general Article 113 rule, funds are treated as an interest-free loan to the debtor unless a specific statute or order provides another effect. Article 129.1 separately provides creditor substitution for mandatory payments.

Effect of full payment

After satisfaction is confirmed, the practitioner reports and the court considers termination. This differs from a corporate bankruptcy settlement: creditor consent to changed terms does not replace full register payment.

Frequently asked questions

Can one creditor be paid?

Ordinary payment is subject to priority and preference rules; Articles 113/125 are designed for the entire register.

Is a creditors’ meeting vote required?

The court reviews the notice under the special procedure; full and timely payment is central.

Are current debts included?

They are not automatically included in the Articles 113/125 registered total and require separate resolution.

Can money be transferred directly to creditors?

The court order specifies the controlled method: special debtor account or notarial deposit.

Official sources

Planning full register payment?

We can review the amount, funding method and payer consequences without guaranteeing case termination.

Initial consultation