Oracle agreed to buy the debts of its Russian subsidiary

This became possible after receiving a license from the American regulator for the right to pay debts. Without such a license, Oracle would not be able to interact with Russian creditors because of sanctions, Antonov said.

According to the letter, reviewed by RBC, Oracle offered to buy the obligations of its Russian subsidiary, Oracle Computer Equipment LLC, for an amount not exceeding 60% of the nominal value of the debt. The total amount of debt exceeds 1.4 billion rubles, which implies the payment of about 840 million rubles.

The letter states that permission for the transaction was received after lengthy negotiations with the regulator, but the conditions, including the maximum purchase amount, remain fixed. The company noted that alternative resolutions, such as a settlement, are temporarily unavailable for regulatory reasons, but may become available in the future.

The bankruptcy administrator in the company’s bankruptcy case, Egor Nepomnyashchikh, confirmed receipt of the letter and noted that it raised a number of questions about the payment procedure and interaction with state creditors, including the Federal Tax Service. According to him, the letter is informative in nature and has no legal force due to the lack of a signature and indication of the sender.

Pen & Paper counsel Roman Kuzmin explained that it was critical for parent company Oracle to obtain a license from OFAC to interact with sanctioned creditors. Briefcase Law Office managing partner Evgeny Kryukov added that discounted debt buybacks are common practice to restore solvency and complete bankruptcy proceedings, allowing the company to control future actions to resolve the debt.

• In spring 2022, Oracle, along with other major foreign companies, suspended operations in Russia due to the start of a military operation. His “daughter” stopped providing technical support to contractors and rejected contracts.
• A year later, the Moscow Arbitration Court declared Oracle Computer Equipment JSC bankrupt. The lawsuit was filed by Croc Inc., a company that operates under the Croc brand.
• As of July 2024, Oracle’s Russian subsidiary had not paid its debts to local companies. Oracle Computer Equipment’s debts are estimated at 1.43 billion rubles. Among the creditors are Marvel Distribution (425.2 million rubles), Alfa-Bank (99.4 million rubles), Force Development Center (440 million rubles), Megafon (44 million rubles), Sberbank (77, 2 million rubles), as well as Jet Infosystems (20 million rubles).
• In August 2024, RBC learned that former employees of Oracle’s Russian subsidiary were trying to force them to go to court to return the bonuses they received in 2022. At that time, 15 claims were filed for an amount of approximately 50 million rubles, but lawyers warned that the amount of claims could increase.