Zelenskyy signs law on preventive debt restructuring

President Volodymyr Zelenskyy has signed a law amending the Bankruptcy Code of Ukraine, which brings Ukrainian legislation closer to European standards.

Source: Ukrainian MP Yaroslav Zhelezniak on Telegram 

Quote: "The law No. 10143 has been signed to improve bankruptcy procedures and align them with European standards, including the introduction of preventive restructuring. This is a requirement of the Ukraine Facility Plan," noted Zhelezniak.

The law introduces a preventive restructuring mechanism that will allow businesses facing financial difficulties to avoid bankruptcy.

This procedure encompasses a range of management, financial, legal, and technical measures to prevent insolvency.

It lasts no longer than six months and costs significantly less than pre-trial rehabilitation or bankruptcy.

The adoption of the law was one of the requirements of the Ukraine Facility Plan and aligns Ukrainian legislation with EU standards through the implementation of European Parliament and Council Directive 2019/1023.

Background:

• On 19 September, the Verkhovna Rada (the parliament) adopted in the second reading and as a whole the draft law No. 10143 on amending the Bankruptcy Code of Ukraine to introduce preventive restructuring procedures.

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