The court opened bankruptcy proceedings against Eldorado.ua chain stores

On September 3, the Kyiv City Commercial Court opened bankruptcy proceedings against Diesa LLC (Eldorado.ua chain). This was reported on the website of the Supreme Court.

The decision was made two years after the company's creditors initiated the procedure.

During this time, the company twice tried to approve a rehabilitation plan (financial rehabilitation) without opening bankruptcy proceedings, but both times it was canceled by the court.

The reorganization plan provided that a significant part of the debt to ordinary creditors and the tax service would be deferred until the company receives compensation for the damage caused by Russia's aggression.

The court recognized this as a condition without a specific term. That is, in fact, creditors do not know when exactly they will receive their money, as it depends on an event that the debtor cannot directly influence.

Although the plan specified deadlines of "no later than 60 calendar months" (for ordinary creditors) and "no later than 36 calendar months" (for the tax authorities), these deadlines were recognized as conditional and formal. The plan allowed for a meeting of creditors to be convened to extend the plan if compensation from Russia was not received by a certain month.

These provisions created uncertainty for creditors and were seen as disadvantageous to them in advance.

The plan did not provide for the appointment of a rehabilitation manager, and control over its implementation was entrusted to the CEO of Dietsa.

The creditors also pointed out that the plan contained inaccurate information about the company's financial condition, its loss-making performance since 2020, and the allegedly "artificial" nature of receivables to related parties.

By court decision, Ivan Bandura was appointed insolvency receiver of Diesa LLC.

Eldorado explains its debts by the full-scale invasion of Ukraine.

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