KIAP lawyers assisted the Client to release the demand guarantees in the total amount of more than 100 mln rubles
KIAP lawyers represented the Client in a court dispute against a Bank arising out of first demand guarantees. The demand guarantees had been issued by the Bank to the benefit of the Client under the subcontract agreement. The counterparty of the Client did not perform its obligations under the subcontract agreement and refused to return an advance payment, to reimburse damages and to pay penalties. The Client presented the demands which the Bank refused to perform.
Bank and the client’s counterparty undertook dozens of possible measures aimed to withhold the payment: commencement of concurrent court proceedings, attempts to suspend the proceedings, pressure from police, counterclaims, commissioning of the expert investigations.
However, following the counter-measures of the KIAP lawyers and the Client, the Bank admitted its obligation to pay under guarantees and voluntary performed payment under the demand guarantees in the total amount of more than 100 mln rubles without waiting for the rendering of the court decision.