Zelensky signs European integration law on debt restructuring: what it changes
22 October 2024 18:56
Ukrainian President Volodymyr Zelenskyy has signed a law on preventive debt restructuring. This was reported by MP Yaroslav Zheleznyak, "Komersant Ukrainian" reports.
The law in question is Law No. 10143 “On Improving the Bankruptcy Procedure and Bringing It Closer to European Standards”. The Verkhovna Rada adopted it on 19 September.
“This is a major and important reform in the field of bankruptcy. Why do we need preventive restructuring? To identify the risks of insolvency of enterprises at early stages, when the situation is not yet critical, and to prevent bankruptcy,” said Oleksiy Movchan, Deputy Chairman of the Economic Development Committee, commenting on the document.
The relevant law supplements the Bankruptcy Code of Ukraine with a new Book Three, “Preventive Restructuring”, which regulates the system of legal measures aimed at preventing or averting debtor insolvency.
Thus, economically active companies experiencing financial difficulties will be able to access an effective framework for preventive restructuring that will enable them to continue their business activities.
The law also provides for a simplification of the bankruptcy procedure by reducing the timeframe for consideration of cases.
The authors of the law say that preventive restructuring makes it possible to take into account the interests of all parties to the case, including the debtor and creditors.
It is worth noting that the adoption of the law was one of the requirements of the Ukraine Facility Plan and brings Ukrainian legislation closer to EU standards through the implementation of Directive 2019/1023 of the European Parliament and of the Council of the European Union.
