One of the leading enterprises of the domestic state-owned corporation was annually paying up to RUB 100 millions of unjustified maintenance costs for noncore assets which included apartment buildings and utility system (heating facilities). In addition to financial costs, the enterprise was incurring the reputation damage from multiple inspections repeatedly initiated by advocacy groups and regulatory authorities.
The owner was looking for opportunities to reduce its maintenance costs. CG specialists have assessed the situation and reviewed the existing practice within the very short timeframes and found that the title to these socially significant facilities could be transferred to the Moscow Government. CG lawyers developed a sound defense strategy and solved the issue. The relevant properties were transferred to the city government without further liability for the former owner.
Why is it of importance?
The state-owned corporations and their subsidiaries continue possessing many noncore assets which include social infrastructure facilities. In vast majority of cases they loom as heavy burden on owners scaling down their financial results. In addition, noncore assets often expose owners to numerous risks from reputation damage to legal risks. At the same time, the vital importance of social infrastructure for thousands households should not be overlooked. CG specialists have found the way for the companies to achieve their goals without any loss to users of these infrastructure facilities.