Bankruptcy process in Ukraine changed


MPs support changes in bankruptcy law

The bankruptcy process in Ukraine changed. Photo:

Verkhovna Rada adopted in the second reading during the June 18 meeting, and in general, a law amending the Bankruptcy Code. Bill Number 3232 307 MPs supported preventing bankruptcy abuses during the quarantine period.

It provides for the introduction of a mechanism to protect companies from bankruptcy that cannot fulfill their obligations to creditors for purposeful reasons.

In particular, for the period of quarantine and within 90 days after its cancellation, permission to open proceedings in the case of bankruptcy of debtor-legal entities at the request of creditors with claims on the debtor arising from February 1, 2020 Is not.

In addition, the creditors’ committee and secured creditors are entitled to decide on the suspension of the auction for the sale of the debtor’s property. If such a decision is made, the arbitration manager is prohibited from making an announcement about the auction.

The law also abrogates arbitration managers’ liability for failure to implement the functions set out by the Insolvency Procedure Code that their execution does not meet the quarantine requirements established by the Cabinet of Ministers to prevent the spread of COVID-19 is.

In addition, a contingent amount of interest on debtor’s obligations is suspended for debtors restructured by debt restructuring or debt restructuring plan. Penalties are not imposed for non-fulfillment by the debtor of such obligations.

Overdue liabilities determined by a debt restructuring or debt restructuring plan are subject to installment plans for the duration of the debt restructuring or restructuring plan.

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Earlier we declared a natural person bankrupt in Ciali Ukraine for the first time. In 2019, the Supreme Economic Court announced the opening of proceedings on the insolvency case of a Ukrainian entrepreneur. This was made possible by the new bankruptcy code, which came into force on 21 October.

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