Comments Arthur Megeria for magazine “Ukrainian Law Firms 2016: A Handbook for Foreign Clients”.
Author: Artur Megeria, Senior Partner of L.I. GROUOP Law Firm.
Media: “Ukrainian Law Firms 2016: A Handbook for Foreign Clients”
There are currently over 5 000 bankruptcy proceeding in economic courts around Ukraine, with most of the entities involved undergoing the liquidation procedure. It means that most business entities that are the subject of bankruptcy proceedings have already been recognized as insolvent by the court and the liquidation procedure aimed at meeting creditors’ demands by selling the bankrupt’s property according to the Act of Ukraine On Restoring Debtor Solvency or Declaring a Debtor Bankrupt is under way.
According to the Unified State Register of Court Decisions and the official website of the Supreme Economic Court of Ukraine, in Q1 2016 local economic courts started 295 bankruptcy proceedings, with 42 cases being opened against business entities registered in Kiev, and Dnepropetrovsk and Kharkov Regions being second and third with 37 and 28 cases, respectively.
Taking the abovementioned number of cases into account, the fact can be established that bankruptcy is and will be of great interest, requiring the involvement of highly-skilled crisis managers for a bankruptcy mechanism to be aimed not only at the liquidation of business entities and debt remission but, first and foremost, at restoring solvency and preserving business activity even of those entities which found themselves in a financial squeeze.