Action required: challenging transactions in insolvency in Georgia in the transport and logistics sector

Alert: Challenging transactions in insolvency in Georgia — transport and logistics sector Effective: immediately upon insolvency filing by the counterparty

Georgian insolvency legislation permits a trustee or a creditor with standing to apply to court to challenge transactions concluded by an insolvent debtor before the formal insolvency filing. In the transport and logistics sector — where pre-insolvency asset transfers, fleet disposals, and route-licence assignments are common — the challenge window and the evidentiary threshold are both subject to strict deadlines. Foreign creditors and cross-border investors who do not act within those deadlines lose the right to challenge irrespective of the merits.

Foreign companies with exposure to a Georgian transport or logistics counterparty facing insolvency are directly affected. Georgian insolvency rules treat certain categories of pre-filing transactions — including transfers of rolling stock, assignment of logistics contracts, and intercompany payments made in the period immediately preceding the filing — as potentially voidable. The relevant look-back period under Georgian law is defined by the insolvency legislation and may differ materially from the periods creditors are familiar with under Russian, German, or English law. Failing to identify and file a challenge before the applicable procedural deadline extinguishes the claim permanently.

Recommended action:

• Identify all transactions concluded between your company and the debtor in the period preceding the insolvency filing date — covering payments received, assets transferred, and contractual novations.
• Obtain a legal assessment of whether any identified transaction falls within the categories subject to challenge under Georgian insolvency legislation, and whether your company has standing to bring the challenge directly or must act through the trustee.
• Instruct Georgian-qualified counsel promptly — challenge applications are time-sensitive and procedural defects at the filing stage are typically non-curable.

For guidance on cross-border creditor strategy in Georgian insolvency proceedings, see the firm's Georgia jurisdiction page (/jurisdictions/georgia/) and the Asset Tracing & Recovery practice in Georgia (/jurisdictions/georgia/asset-recovery/). For related regional context, see insolvency proceedings in Armenia (/jurisdictions/armenia/insolvency/) and insolvency proceedings in Kazakhstan (/jurisdictions/kazakhstan/insolvency/).

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About Vetrov & Partners Vetrov & Partners is a boutique law firm established in 2009 and recognised by Pravo-300 for eight consecutive years. The firm advises foreign creditors and cross-border investors on insolvency, enforcement, and asset recovery across Russia and, through trusted regional counsel, in Georgia and neighbouring jurisdictions. Enquiries: info@vetrovpartners.com | WhatsApp / Telegram: +7 (983) 510-38-76 | t.me/vitvetcom

This alert is for informational purposes only and does not constitute legal advice. Vetrov & Partners is a Russian-qualified law firm. Contact info@vetrovpartners.com for advice on your specific situation.

— Giorgi Kavtaradze Contributing Regional Analyst — Georgia, Commercial Disputes & Enforcement, Vetrov & Partners vetrovpartners.com/contributions/