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Creditors to be divided into classes
25.02.2016
The Ministry for Economic Development agreed for a serious change of amendments to the law “On insolvency (bankruptcy)” published in spring 2015, that were subject to harsh criticism on the part of business and banking community. The new version of the bill provides, among other things, elimination of supervision and external management stages, division of creditors into classes and possibility for bankruptcy cases to be heard in mediation courts.
Lawyer of bankruptcy cases group of YUST Law Firm Rodion Smirnov told Legal.Report portal about his positive views on the legislative initiative to “introduce a real recovery procedure for the debtor”, the main purpose of which is to preserve the business. “The existing possibility to introduce financial recovery for the debtor is hardly ever used, the so-called “liquidation” model using bankruptcy proceedings is usually applied”, the expert mentioned.
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The Ministry for Economic Development agreed for a serious change of amendments to the law “On insolvency (bankruptcy)” published in spring 2015, that were subject to harsh criticism on the part of business and banking community. The new version of the bill provides, among other things, elimination of supervision and external management stages, division of creditors into classes and possibility for bankruptcy cases to be heard in mediation courts. Lawyer of bankruptcy cases group of YUST Law Firm Rodion Smirnov told Legal.Report portal about his positive views on the legislative initiative to “introduce a real recovery procedure for the debtor”, the main purpose of which is to preserve the business. “The existing possibility to introduce financial recovery for the debtor is hardly ever used, the so-called “liquidation” model using bankruptcy proceedings is usually applied”, the expert mentioned.
Read more
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