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TGS Baltic Successful for Best Idea in Filing Bankruptcy

TGS Baltic Successful for Best Idea in Filing Bankruptcy

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TGS has successfully represented Marcel Vichmann’s Best Idea OU in filing a bankruptcy petition against Oliver Kruuda.

According to TGS Baltic, “in October 2021, Tartu County Court declared the bankruptcy of Oliver Kruuda. The petition for the declaration of bankruptcy was filed by Marcel Vichmann’s company OU Best Idea as Kruuda had failed to pay the debt of EUR 15 million he had been ordered to pay under a final court judgment. In January 2022, Tartu Circuit Court upheld the county court order by agreeing with TGS Baltic attorneys that although Oliver Kruuda has left for Ireland, his essential interests are still related to Estonia and it is justified to conduct Kruuda's bankruptcy proceedings in Estonia. Tartu Circuit Court also agreed that Kruuda had left Estonia secretly to conceal himself from his creditors and evade the performance of his obligations. The circuit court found that Kruuda failed to provide any plausible explanation concerning the fact that the reason behind his move to Ireland could be anything other than seeking a more favorable location for conducting bankruptcy proceedings.”

According to the firm, “although the law does not provide for the possibility to submit an appeal against a bankruptcy order to the Supreme Court, Kruuda still filed an appeal against the court order with the Supreme Court. On Monday, April 18, 2022, the Supreme Court issued an order not to accept Kruuda’s appeal against the court order. By now, the order declaring Kruuda bankrupt has become final in Estonia. This means that despite Kruuda's efforts to have his bankruptcy proceedings conducted in a more favorable country, i.e. Ireland, Kruuda's bankruptcy proceedings are taking place in Estonia, which is in the interests of Kruuda's creditors.”

Finally, the firm reported that “this is a precedent-setting case in Estonian judicial practice, where Kruuda failed to avoid bankruptcy in Estonia even though he had started to conceal himself in Estonia to avoid bankruptcy proceedings and he managed to achieve the declaration of bankruptcy in Ireland before the declaration of bankruptcy in Estonia. The situation is unique because proceedings are taking place in Estonia and Ireland at the same time, and Estonian courts have found that an earlier bankruptcy order rendered in Ireland does not impede the conducting of Oliver Kruuda’s bankruptcy proceedings in Estonia.”

TGS Baltic’s team included Senior Associates Kedli Anvelt and Paul Varul.

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