Publication date: 08.06.2024
Legal regulation of bankruptcy and insolvency of enterprises in Ukraine
Introduction
Bankruptcy and insolvency of companies are complex and at the same time important processes that have a significant impact on the Ukrainian economy. Legal regulation of these issues is aimed at ensuring balanced interests of creditors, debtors and other stakeholders. In this article, we will analyze the main aspects of the legal regulation of bankruptcy and insolvency of enterprises in Ukraine.
Legal framework
The Bankruptcy Code of Ukraine:
- The main regulatory act governing bankruptcy procedures and restoration of debtors' solvency. Enacted on October 21, 2019, the Code consolidated previous legislation, simplifying and systematizing the bankruptcy process.
The Civil Code of Ukraine:
- Contains general provisions on obligations and liabilities that also apply in bankruptcy proceedings.
Commercial Code of Ukraine:
- Defines the legal framework for economic activity, including insolvency and bankruptcy of enterprises.
Bankruptcy procedures
Pre-trial rehabilitation:
- A procedure for restoring a debtor's solvency before bankruptcy proceedings are initiated. It involves measures aimed at the financial rehabilitation of the company without the involvement of judicial authorities.
Bankruptcy proceedings:
- It begins with filing an application with the commercial court. The court considers the petition and decides whether to initiate bankruptcy proceedings.
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Debt restructuring:
- A procedure that involves changing the terms of fulfillment of debt obligations in order to restore the debtor's solvency and prevent its liquidation.
Liquidation:
- The last stage of the bankruptcy procedure, which includes the sale of the debtor's property to satisfy creditors' claims and terminate the company's operations.
The main participants in bankruptcy proceedings
Debtor:
- An enterprise that is unable to fulfill its financial obligations to creditors.
Creditors:
- Persons or organizations that have financial claims against a debtor. Creditors can be secured (having collateral or other types of security) and unsecured.
Insolvency officer:
- A person appointed by the court to manage the debtor's property, restructure or liquidate the company.
Commercial Court:
- A judicial body that considers bankruptcy cases and makes relevant decisions.
Protection of creditors' rights
Priority of satisfaction of claims:
- Creditors' claims are satisfied in the order of priority set forth in the Bankruptcy Code of Ukraine. Secured creditors have priority over unsecured creditors.
Securing creditors' claims:
- Creditors have the right to secure their claims by seizing the debtor's property or other measures.
Control over the actions of the insolvency receiver:
- Creditors have the right to control the actions of the insolvency officer and appeal his decisions in court.
Conclusion.
The legal regulation of bankruptcy and insolvency in Ukraine is aimed at balancing the interests of all stakeholders. An important component of this process is the timely detection of financial problems
