The Verkhovna Rada plans to take a step towards introducing the institution of preventive restructuring
Kyiv • UNN
The Verkhovna Rada plans to consider in the first reading a draft law that provides for the introduction of preventive restructuring procedures at one of its next meetings
The Verkhovna Rada plans to consider in the first reading a draft law that provides for Directive 2019/1023 of the European Parliament and of the Council of the European Union and the introduction of preventive restructuring procedures at one of its next meetings. UNN reports this with reference to the agenda of the Verkhovna Rada meeting.
Oleksiy Movchan, Deputy Chairman of the Committee on Economic Development, reported that the draft law No. 10143 on amendments to the Code of Ukraine on Bankruptcy Procedures and other legislative acts of Ukraine regarding the implementation of Directive 2019/1023 of the European Parliament and of the Council of the European Union and the introduction of preventive restructuring procedures (Reg. No. 10143) will introduce the institution of preventive restructuring in Ukraine.
This means that Ukraine, like the EU countries, will have a tool to prevent insolvency for businesses
The main provisions of the draft law are as follows:
- the benefits of the new procedure for business;
- the difference between preventive restructuring and out-of-court reorganization;
- effect of the moratorium;
- enforcement proceedings;
- process administration;
- detection of early signs of insolvency;
- voting procedure, influence of stakeholders on the procedure.
According to the explanatory memorandum to the draft law, one of the objectives of implementing EU Directive 2019/1023 is to unify the relevant legislation of the EU Member States in order to introduce common rules for preventive restructuring throughout the EU, which requires Ukraine, as a candidate for EU membership, to implement EU Directive 2019/1023 properly and efficiently into the national legislation of Ukraine.
At its meeting on December 4, 2023, the Committee on Economic Development decided to recommend to the Verkhovna Rada of Ukraine to include the said draft law in the agenda of the session and, following the results of its consideration in the first reading, to adopt it as a basis, reducing the deadline for submission of proposals and amendments by the subjects of the right of legislative initiative by half, taking into account part one of Article 116 of the Law of Ukraine "On the Rules of Procedure of the Verkhovna Rada of Ukraine".
