In September 2016 the leading expert of Valrus Ltd., Mr. Pavel Kartsev was involved by the Arbitration Court of Karelia Republic to conduct a forensic examination within the case No. А26-3616/2014.
The Court had to consider the issue of defining the market value of leasehold rights (the range of rights and obligations of the lessee) belonged to the company “Belomorsky Pit “ under finance lease agreement with “The company of retail lending and leasing” as of April 02, 2013. The subject of leasing was jaw crushing plant by Metso (Finland), a rather specific, complex and expensive equipment for mining industry.
To answer to the Court it was necessary to value both the Market value of Metso equipment taking to account the accumulated depreciation and calculate the present value of the lessee's obligations according to the leasing payments schedule with addition of debt and penalties by the valuation date.
As part of the appraisal, we did the research of the secondary market for comparable equipment in Russia, found comparable machinery and equipment in Europe, studied the costs of shipping to Russia, customs clearance and installation. In addition, we held talks with a representative of the supplier and interviewed him about Metso's experience of supply to Russia and maintenance of this equipment, as well as assistance to customers in sales of second-hand equipment. To estimate the obligations, the expert carefully studied the materials of the case, analyzed the contract with additional agreements and all the changes in a payment schedule, examined the reconciliation acts/reports between the parties and as a result established the accepted debt indicators.
The Arbitration Court admitted the results of the examination conducted by Pavel Kartsev and included them in the court decision.
The appraisal (forensic examination) of the rights and obligations of the lessee regarding the owned Metso equipment allowed to defend the creditors' rights and to contest the actions of the management to withdrawing the property at a reduced cost.
Reference:
Decision of the Arbitration Court of Karelia Republic