Bankruptcy in a new light: «insider» liquidators and squandering state property

Source Finance.ua

On January 19, 2013, a new wording of the Law «On Restoration of the Debtor’s Solvency or Declaring a Debtor Bankrupt» was enacted. It is aimed at more effective protection of creditors’ rights and restriction of fraudulent bankruptcy.
The main innovations of the new Law are as follows.

Firstly, the case on bankruptcy of the company will be initiated only after the court in the private session verifies sufficiency of the applicant’s claims.
Secondly, since January 19, 2014, all decisions on initiation of bankruptcy proceedings will be published on the website of the Higher Commercial Court of Ukraine. This amendment will enable creditors to learn in advance about the possible bankruptcy of the debtor.
Thirdly, the procedure for imposing a moratorium on satisfaction of creditors’ claims has changed. At present, such a moratorium will be imposed by the court at the stage of the private session, and not at the stage of the proceedings, as it was before.
It is also positive that the law eliminates the opportunity to declare the company bankrupt due to absence at the place of registration, which was very popular for liquidation of enterprises.