Date of publication: 1 February 2023
Roman Marchenko, Attorney at Law, Senior Partner, Insolvency Receiver
Source: INSOL Europe
Сurrently in Ukraine there are quite intense ongoing public discussions regarding the draft law ‘On Introduction of Amendments to the Bankruptcy Code of Ukraine as to Prevention of Abuses in the Sphere of Bankruptcy During Martial Law (No. 8231)’.
The draft law stipulates for the introduction of a moratorium on the commencement of proceedings in bankruptcy cases under the statements of creditors with monetary claims that originated after 24 February 2022 and the suspension of proceedings in cases initiated after 24 February 2022.
The authors of the draft law are convinced that its adoption will make it possible to save the production and business potential of Ukraine during the state of martial law.
In December 2022, the Committee of the Verkhovna Rada of Ukraine on Ukraine’s integration into the European Union published a conclusion, according to which the mentioned draft law does not contradict the terms of the Association Agreement between the EU, Ukraine, the European Atomic Energy Community and their member states, taking into account its temporary nature and considering for the introduction of martial law in Ukraine.
However, the professional community negatively met the possibility of the adoption of this draft law, in particular due to the existing negative experience with the so-called “Covid moratorium”, when bankruptcy proceedings could not be opened based on the statements of creditors with monetary claims that originated during the quarantine period. Judges and insolvency receivers in Ukraine draw attention to the fact that the introduction of such moratoriums will be an attempt to interfere with the economic activities of the companies and give preference to “bad faith” debtors, which negatively affects the country’s economy.
As of January 2023, the draft law has not been referred for adoption by the deputies.