On October 17, 2020, the Law of Ukraine No. 686-IX “On Amendments to the Bankruptcy Procedure Code of Ukraine” (hereinafter - the Law) entered into force.
The main innovations of the Law are, in particular:
- prevention of opening of bankruptcy proceedings in relation to state authorities / local self-government bodies, budgetary institutions and organizations, state-owned enterprises, as well as rehabilitation of such debtors before opening of bankruptcy proceedings;
- the application for initiating bankruptcy proceedings (insolvency) of the initiating creditor or debtor - an individual shall contain a proposal for the candidacy of the arbitral trustee to perform the powers of the administrator of the property or the restructuring manager. The Commercial Court, when initiating bankruptcy (insolvency) proceedings, appoints such an arbitral trustee as the administrator of the property or as the restructuring trustee. If such a proposal or statement made by this arbitral trustee to participate in the case is missing, he may not be appointed as a trustee or restructuring manager;
- if the application for bankruptcy proceedings is filed by the debtor - a legal entity, the appointment of an arbitral trustee to execute the powers of property administrator or restructuring manager shall be made by the commercial court independently, in the order being in force before the date of this Code enforcement.
In general, the Law will allow to conduct bankruptcy proceedings within the procedural time limits established by the Code, that stimulates the investment and credit spheres of the economy.
Gennady Silvanovich, attorney @ “Dynasty Law & Investment”.