Overview

Distressed debt became a central issue in Russia and around the world during the 2008 financial meltdown and the handling of its impacts on the willingness of creditors to resume lending and getting the economic wheels turning again. Although nobody wants to think the worse, simple precautions can help put lenders in a more certain legal position, and enable them to have a better understanding of the processes involved when debtors hit the rocks.

Although lenders and borrowers are to some extent in denial about the possibility of new problems, the current market volatility, coupled with the pressure of a new economic downturn will see many Russian market players with a plan B in mind. This applies to financial debt, as well as companies in Russia working on deferred payments or under leasing schemes.

This briefing deals with what Russian creditors and debtors can do to prepare on the legal and logistical side as well as what restructuring tools are available.