The court declared the Russian subsidiary of Google bankrupt

The Moscow Arbitration Court declared the Russian subsidiary of Google bankrupt, reports “RIA News”.

According to the minutes of the meeting of creditors, at which in August it was decided to go to court with a demand to introduce bankruptcy proceedings, the total amount of claims of creditors with voting rights included in the register is 20.18 billion rubles. The main part is 19.51 billion rubles. – accounts for the debt to the tax service.

The company filed for bankruptcy on June 16, 2022. Google explained that the decision was due to the “impossibility of fulfilling monetary obligations.” In December last year, a surveillance procedure was introduced against the company.

In September, temporary manager of the company Valery Talyarovsky published conclusion on the presence of signs of deliberate bankruptcy of Google. Having analyzed the company’s activities from March 2019 to December 2022, he found that during this period the absolute liquidity ratio of the legal entity decreased significantly. This was influenced, among other things, by an increase in current liabilities in the form of an increase in accounts payable and the appearance of debt on dividend payments in the amount of 10 billion rubles.

Google’s Russian subsidiary filed a petition in court for its own bankruptcy, “since all the debtor’s funds are sent to the account of the bailiff.” The report states that the deterioration in the dynamics of the company’s financial position is due, among other things, to the company’s failure to pay fines for failure to remove prohibited information (Part 5 of Article 13.41 of the Code of Administrative Offenses of the Russian Federation). In particular, Google was fined on December 27, 2021 for 7.221 billion rubles, and on July 20, 2022 the company was fined again for 21.077 billion rubles.

The manager also noted that Google’s subsidiary wrote off the value of non-current and current assets, “motivating the decision by the fact that there is uncertainty in the continuity of operations.” As a result, this led to a “significant reduction in the value of the assets” of the company, through which it could pay off part of its liabilities.