Court recognizes Zhytlo-Capital as creditor of Ukrbud Development, thus allowing to protect rights of 3,321 investors
The Economic Court of Kyiv recognized the financial company Zhytlo-Capital as a creditor of Ukrbud Development, which made it possible to protect the rights of 3,321 Ukrbud investors, the press service of the company told Interfax-Ukraine.
"The court recognized Zhytlo-Capital LLC as a creditor of Ukrbud Development LLC, which makes it possible to make decisions on the future fate of the debtor, participate in decision-making, protect the rights of investors," said head of the company Dmytro Hontar.
At the same time, it is noted that on August 30, 2023, with the participation of Zhytlo-Capital LLC, a general meeting of creditors of Ukrbud Development LLC, which is in bankruptcy proceedings, was held. The meeting was held in pursuance of the ruling of the Economic Court dated August 7, 2023 in bankruptcy case No. 910/14968/22.
According to Hontar, creditor claims are presented in connection with the failure of Ukrbud Development to fulfill its obligations to complete the construction of seven residential complexes: Akadem-Park, Kyrylivska Roscha, Lake House, Podil-Grad, Solar City, Twin House, and Freedom. The total number of investors who financed these housing complexes through Zhytlo-Capital is 3,321 people.
Hontar stressed that now the completion of the complexes is being carried out by PrJSC Kyivmiskbud, but legally the construction objects (housing complexes) are on the balance sheet of Ukrbud Development and have not been accepted by Kyivmiskbud, and the completion is carried out on the basis of agreements between these companies.
Only after the court recognizes that it is a creditor in the bankruptcy proceedings of Ukrbud Development, Zhytlo-Capital can act as a party in this case and protect the rights of investors, the expert explained.
If the financial company had not filed creditor claims against Ukrbud Development LLC, there would have been a risk that in the event of the liquidation of Ukrbud Development, the claims of all creditors who did not declare during the bankruptcy proceedings would be considered repaid, and therefore, the same would be considered the obligation of the developer to transfer to investors their real estate in the future, and the investors themselves would be left without the rights to receive their housing or funds.
According to Hontar, all measurable units of investment objects and property rights that were assigned by Zhytlo-Capital to investors remain valid.
"Our goal is the transition to reorganization (restoration of the company's activities) in bankruptcy proceedings, the resumption of the construction of these complexes and its completion by Kyivmiskbud, putting them into operation and transferring housing to investors, which was noted in our proposals for the reorganization plan, which we filed with the Economic Court of Kyiv as part of the bankruptcy case of Ukrbud Development," Hontar emphasized.