{"id":275077,"date":"2020-06-30T09:18:28","date_gmt":"2020-06-30T06:18:28","guid":{"rendered":"https:\/\/eba.com.ua\/?p=275077"},"modified":"2020-07-01T18:21:22","modified_gmt":"2020-07-01T15:21:22","slug":"ukraine-anti-covid-19-bankruptcy-related-measures","status":"publish","type":"post","link":"https:\/\/eba.com.ua\/en\/ukraine-anti-covid-19-bankruptcy-related-measures\/","title":{"rendered":"[:en]Ukraine: Anti-COVID-19 Bankruptcy-Related Measures[:]"},"content":{"rendered":"<p><\/p>\n<p><em>Author: <a href=\"https:\/\/hillmont.com.ua\/pr\/commercial-litigation\/olha-stakheyeva-bogovyk\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\">Olha Stakheyeva-Bogovyk<\/a>, Senior Associate at Hillmont Partners<\/em><\/p>\n<p><a href=\"https:\/\/hillmont.com.ua\/wp-content\/uploads\/Hillmont-Partners_Anti-COVID-19-Bankruptcy-related-Measures_Legal-Alert_EN_19062020.pdf\">Download in pdf<\/a><\/p>\n<p>On 18 June 2020, the Parliament of Ukraine finally adopted a temporary package of measures to address bankruptcy-related risks which have arisen due to the COVID-19 pandemic.<\/p>\n<p>Draft Law No. 3322 On Amendments to the Code of Ukraine on Bankruptcy Procedures (aimed at prevention and overcoming of the outbreak and spread of the coronavirus (COVID-19)) (\u201cthe Law\u201d) was eventually passed in the Parliament with further amendments in its second hearing.<\/p>\n<p>The Law shall enter into force the day after its promulgation.<\/p>\n<p>The adopted measures as per the Law, as was initially envisaged, can be divided into two blocks, based on a time criterion:<\/p>\n<p>a)measures applicable during the lockdown period;<\/p>\n<p>b)measures applicable during the lockdown and 90 days thereafter.<\/p>\n<p><b>1. Measures <\/b><b>which shall apply during the lockdown period<\/b><b>:<\/b><\/p>\n<ul>\n<li>Introduction of the possibility to hold creditors\u2019 meetings remotely (either by videoconference or by a poll), \u2013<\/li>\n<\/ul>\n<p><b>Condition <\/b><b>added:<\/b> should the proper identification of participants and verification of powers of representatives of creditors be observed. A record of a videoconference must be attached to the minutes of the meeting of creditors\/ creditors\u2019 committee;<\/p>\n<ul>\n<li>Release of trustees from their liability for failure to take actions as per the BCU due to lockdown measures, \u2013<\/li>\n<\/ul>\n<p><strong>Condition added:<\/strong> should the trustee prove that such actions can\u2019t be taken in the lockdown, and notify the creditors\u2019 committee and secured creditors thereof;<\/p>\n<ul>\n<li>Prolongation of the duration of preliminary bankruptcy court hearings, moratorium, electronic auction announcements, implementation of a rescue plan, pending administration and liquidation procedures, and an extension of the period for avoidance transaction filings.<\/li>\n<\/ul>\n<p><b>2. Measures which shall apply during the lockdown period and 90 days thereafter:<\/b><\/p>\n<ul>\n<li>Prohibition of involuntary corporate bankruptcy case filings by creditors, should claims arise <b>after 12 March 2020<\/b>, \u2013<\/li>\n<\/ul>\n<p><strong>Note:<\/strong> not from <i>01 February 2020<\/i> as was initially suggested;<\/p>\n<ul>\n<li>Prolongation of a 1-month-time period within which a debtor\u2019s director has a duty to file for bankruptcy if a \u2018threat of insolvency\u2019 occurs (which, in case of failure to do so, triggers the joint\/ personal liability of the director for the debtor\u2019s debt), \u2013<\/li>\n<\/ul>\n<p><strong>Condition added:\u00a0<\/strong> should a debtor prove that a failure to observe the 1-month-time period was caused by the outbreak of COVID-19 and\/or by measures enacted to combat its spread;<\/p>\n<ul>\n<li>Temporary suspension of electronic auctions for the sale of debtors\u2019 assets, should creditors have voted for that, \u2013<\/li>\n<\/ul>\n<p><strong>Condition added:<\/strong> such creditors shall bear storage and maintenance expenses, and risks of loss or deterioration of assets;<\/p>\n<ul>\n<li>Suspension of the accrual of interest on obligations which have been restructured under the rescue plan. Penalties for non-performance of such obligations shall not accrue. Defaulted obligations under the rescue plan shall be subject to deferred payment for the period of implementation of the rescue plan.<\/li>\n<\/ul>\n<p><em><b>Key Takeaways:<\/b><\/em><\/p>\n<ol>\n<li><em>Creditors cannot initiate a bankruptcy case against the debtor during the lockdown period and 90 days thereafter, should their claims arise <b>after <\/b><b>1<\/b><b>2<\/b> <b>March 2020<\/b>.<\/em><\/li>\n<li><em>Debtors\u2019 directors have not been released from a duty to file for bankruptcy within <\/em><br \/>\n<em>a 1-month-time period. However, they may be excused from the observance of this strict time limit should they prove that timely filing was impeded by COVID-19 related measures.<\/em><\/li>\n<li><em>The extension (prolongation) of the procedural terms of pending bankruptcy cases has been envisaged, although the justification for such measures is questionable in our opinion.<\/em><\/li>\n<\/ol>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>Author: Olha Stakheyeva-Bogovyk, Senior Associate at Hillmont Partners Download in pdf On 18 June 2020, the Parliament of Ukraine finally adopted a temporary package of measures to address bankruptcy-related risks which have arisen due to the COVID-19 pandemic. Draft Law No. 3322 On Amendments to the Code of Ukraine on Bankruptcy Procedures (aimed at prevention [&hellip;]<\/p>\n","protected":false},"author":4489,"featured_media":275081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[24,23],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ukraine: Anti-COVID-19 Bankruptcy-Related Measures - European Business Association<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/eba.com.ua\/ukraine-anti-covid-19-bankruptcy-related-measures\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ukraine: Anti-COVID-19 Bankruptcy-Related Measures - European Business Association\" \/>\n<meta property=\"og:description\" content=\"Author: Olha Stakheyeva-Bogovyk, Senior Associate at Hillmont Partners Download in pdf On 18 June 2020, the Parliament of Ukraine finally adopted a temporary package of measures to address bankruptcy-related risks which have arisen due to the COVID-19 pandemic. 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