The Federal Tax Service filed bankruptcy petitions with the Commercial Court of St Petersburg and the Leningrad Region against the affiliated Chinese companies Hua Bao International Investment Company and Hua Fung. The companies planned to implement major construction projects worth over RUB 38 bn in St Petersburg and the Leningrad Region.
Simultaneously with the bankruptcy filing, the tax authority through the court filed a claim against Hua Bao to foreclose on pledged land plots in the Lenigrad Region.
"It is possible that in 2021 (or later) Hua Bao was granted a tax deferral, which was secured by a mortgage. Now the term of the deferment has expired, but the debt has still not been paid, so the tax authority applied to court for bankruptcy and foreclosure of pledged land plots," Sergei Bakeshin, Head of Dispute Resolution & Insolvency practice of Maxima Legal, commented for Novy Prospect online edition.
