News date: 6 February 2025
Vadym Kizlenko, Counsel, Insolvency Receiver, Co-Head of Insolvency and Financial Restructuring of Ilyashev & Partners Law Firm, member of the Insolvency Receivers Council of Kyiv City, spoke at the round table “Remuneration of an insolvency receiver – from challenges to solutions”, which was held on 31 January 2025 in Kyiv. The event was organized by the Insolvency Receivers Council of Kyiv City with the support of the EU Project Pravo-Justice.
The round table participants, including judges of commercial courts and the Supreme Court, business representatives, insolvency receivers, and lawyers, discussed the challenges associated with the remuneration of insolvency receivers and explored joint solutions to enhance the financial resource allocation system in bankruptcy proceedings.
Vadim Kizlenko emphasized that fair compensation for insolvency receivers is essential to ensuring their independence. Currently, there are no guaranteed sources of payment for their services, except for the advance payment by the initiating creditor for the first three months of the bankruptcy proceedings.
“There can be no bankruptcy proceedings without the involvement of an insolvency receiver. Therefore, it is essential to introduce legislative amendments to address this issue: if there is no funding for the trustee’s activities, the court is authorized to terminate the bankruptcy proceedings. The payment for the services of an insolvency receiver should also be differentiated based on the complexity of the bankruptcy proceedings – the more intricate the proceedings, the higher the remuneration should be,” emphasized Vadym Kizlenko.
The participants also discussed the peculiarities of paying remuneration to insolvency receivers when selling mortgaged property, problematic aspects of payment of remuneration and court fees in proceedings without property and the prospects of remuneration in case of zero liquidation estate.
The Insolvency Receivers Council of Kyiv City is a body of the Ukrainian National Insolvency Trustees Association, an all-Ukrainian professional non-governmental non-profit organization uniting all insolvency receivers of Ukraine for the implementation of their self-management tasks.
The EU Project Pravo-Justice coordinates the efforts of over 70 international and 50 domestic experts, offering specialized expertise in justice sector reform. The EU-funded project promotes greater rule of law in Ukraine, in line with European standards and comparative practices.