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Functional Changes in the Code of Ukraine on Bankruptcy Procedures
The new Law of Ukraine on amendments to the Code of Ukraine on bankruptcy procedures and certain other legislative acts aims to implement Directive (EU) 2019/1023 of the European Parliament and of the Council. The main focus of the amendments is the introduction of preventive restructuring procedures.
Implementation of Preventive Restructuring
The law introduces mechanisms for preventive restructuring aimed at the early resolution of financial difficulties faced by enterprises. This procedure allows debtors and creditors to collaboratively develop a restructuring plan to avoid bankruptcy.
Changes to Bankruptcy Procedures
The Code on bankruptcy procedures is supplemented with provisions regulating new stages for filing applications for restructuring, requirements for restructuring plans, and mechanisms for their approval. Amendments have been made regarding the rights and obligations of the parties during the restructuring process.
Criteria for Preventive Restructuring
Clear criteria have been established under which an enterprise may initiate the preventive restructuring process. These include financial incapacity, unstable financial condition, and other indicators that suggest a potential need for restructuring.
Procedures and Mechanisms
The law defines detailed procedures for submitting and reviewing applications for restructuring, including timelines, necessary documents, and the responsibilities of the involved parties. Mechanisms for monitoring the implementation of approved restructuring plans are also established.
Rights and Obligations of the Parties
The rights of the debtor in submitting an application for restructuring and the obligations of creditors regarding participation in the process have been defined. The law also regulates the informational obligations of the parties and mechanisms for resolving disputes that may arise during the procedure.
Implementation of EU Directive 2019/1023
The law ensures compliance of national legislation with the provisions of EU Directive 2019/1023 aimed at creating effective frameworks for the restructuring of debtors. This includes the harmonization of procedures, timelines, and mechanisms with European standards.
Other Changes to Legislation
In addition to changes to the Code on bankruptcy procedures, the law amends other regulatory acts related to corporate law, protection of creditors’ rights, and ensuring transparency in restructuring processes.[:]
