at Russian
Institute
of Modern
Arbitration
at Russian
Institute
of Modern
Arbitration
A dispute regarding a put option exercise arose between participants of a company. Two participants (Lenders) arranged a conclusion of an agreement with the company, under which it was granted a loan, while the other two participants (Managers) had to prevent the company from going bankrupt. To safeguard their interests, the Lenders entered into a put option contract with the Managers. According to the contract provisions, the Lenders received an irrevocable offer to buy the company’s interest. That offer could be accepted if certain conditions of the option are met. One of the Lenders found these conditions to have been met and accepted the offer. However, the Managers refused to pay for the company’s share, because the Lender allegedly had not confirmed certain events and had not conducted an independent assessment of the interest. After an exchange of documents, the Parties managed to settle the dispute.
04.03.2022
