Ilyashev & Partners Secured Clients’ Discharge from Debts through Financial Restructuring

Ilyashev & Partners Law Firm successfully advised on debt restructuring procedures for individuals in two interrelated insolvency cases arising from a single credit obligation. The Commercial Court of Kyiv City approved the reports on the implementation of the restructuring plans and closed the proceedings, confirming the full performance of the court-approved plans and releasing the debtors from their outstanding liabilities.

The insolvency receiver in the case was Vadym Kizlenko, Counsel and Co-Head of Insolvency and Financial Restructuring at Ilyashev & Partners.

Within the proceedings, it was established that the husband and wife acted as joint and several debtors under the same loan agreement, with the husband as the principal debtor and the wife as a guarantor.

As part of the procedure, carried out with the involvement of Ilyashev & Partners team, the debtor’s pledged assets were sold through electronic auctions, and the proceeds were allocated to the secured creditor. At the same time, in accordance with the terms of the restructuring plans, the unsatisfied creditors’ claims in respect of the greater part of the outstanding debt were subject to write-off.

Following the review of the reports, the court confirmed that the restructuring plans had been duly performed, released the debtors from their debts, declared the creditors’ monetary claims satisfied, terminated the moratoria, lifted restrictions on the disposal of property, and closed the insolvency proceedings in accordance with the provisions of the Code of Ukraine on Bankruptcy Procedures.

The project was handled by Yaroslav Mudryi, Lawyer at Ilyashev & Partners, under the supervision of Vadym Kizlenko.