BDO Law has successfully assisted the Akers VKS ventilation and conditioning systems company in a lawsuit against Euro Luxe Trading Latvia, the developer of the Vernisaza recreational complex, which had refused to pay Akers for construction work it had performed.
According to BDO Law, it managed to recover the debt by seizing the defendant's bank accounts, and after less than three years of litigation, which, according to BDO Law, “is a relatively short period of time for a case like this," Akers VKS saw the money transferred into its bank account.
The ventilation and conditioning systems company Akers VKS had performed as required by the contract at the Vernisaza recreational complex. The system had been put into service as promised, but the final payments required by the contract were not made, and, according to BDO Law, "the developers of the complex were coming up with a range of questionable reasons to avoid payment." According to the firm, “the debt recovery case was made difficult by the fact that the building of the recreational complex was legally owned by a company registered in the Caribbean island of Angilsk, which was leased to the developer SIA Euro Luxe Trading Latvia, with which all construction contracts were actually concluded.”
According to the firm, this approach is used often, separating the company that owns the assets from the company taking responsibility for the commitments. In this way, BDO Law reports, "the debt recovery may be seriously compromised once the judgment enters into force." According to the firm, "there were other companies involved in the construction works of the recreational complex Vernisaza who also filed claims to the developer of the project. Akers VKS was the only one who opted to enforce its rights in court."
