On Availability and Potential Effectiveness of Innovations in the Code of Ukraine on Bankruptcy Procedures

Keywords: bankruptcy procedure, settlement agreement, liquidation, insolvency official, debtor's property, creditor committee

Abstract

The article compares the provisions of the Law of Ukraine “On Recovery of the Debtor's Solvency or Bankruptcy” and the Code of Ukraine on Bankruptcy Procedures, which will be enacted on October 21, 2019. Four groups of changes regarding bankruptcy from October 21, 2019 were identified: 1) further consideration of bankruptcy cases will be carried out in accordance with the provisions of the Code, except for bankruptcy cases, which are at the stage of rehabilitation on the day the Code comes into force, and the debtor’s property is sold in accordance with the requirements of the Code, except for the debtor’s property, which announcement about the sale is published before the date of its entry into force; 2) the said Law and the Resolution of the Verkhovna Rada of Ukraine on its entry into force will lose force, the Law of Ukraine “On the Moratorium on the Recovery of Property of Citizens of Ukraine Provided as Security for Loans in Foreign Currency” will become invalid and on October 21, 2020; 3) three codes and ten laws will be amended, in particular, a settlement agreement will be excluded from bankruptcy proceedings, the basic remuneration of an insolvency official will be increased, which, together with the formation of a significant number of new law enforcement and judicial agencies established to combat corruption, prevent its manifestations, determine the degree and extent of the wrongdoer’s responsibility and apply punitive measures, is aimed at stimulating potential and current insolvency officials to more efficient work; innovations are introduced regarding the sale of debtor’s property: - the sale of a complete property complex is not foreseen as a mandatory procedure; - the debtor’s property is sold at auction through the electronic trading system; - the insolvency official determines the terms of the sale in agreement with the creditor committee and the secured creditor (in respect of the property which is the subject of security); - mandatory conditions of sale are defined; - the insolvency official directs the sale conditions to the creditor committee and within 20 days from the receipt of the sale conditions by the latter, convenes a creditor committee, and sends the sale conditions of secured property to the secured creditor; - features of the auction and sale of the debtor’s property are defined; 4) the task was set for the Ministry of Justice of Ukraine and the Cabinet of Ministers to develop and harmonize new legislation.

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How to Cite
Bohatyr, V. (1). On Availability and Potential Effectiveness of Innovations in the Code of Ukraine on Bankruptcy Procedures. Law Review of Kyiv University of Law, (2), 142-146. https://doi.org/10.36695/2219-5521.2.2019.25
Section
The issues of civil law, commercial law, labour law and social security law of U