(Vedomosti Verkhovna Rada (VVR), 2019, No. 19, p. 74)
{In the text of the Code, the words and figures "enterprise, in the authorized capital of which the share of state ownership exceeds 50 percent" in all cases and numbers are replaced by the words and figures "business company, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state" in the corresponding case and number in accordance with Law No. 2971-IX dated 20.03.2023 }
{In the text of the Code, the word "cancellation" is replaced by the words "termination" in accordance with Law No. 4017-IX of 10.10.2024 }
{In the text of the Code, the words "auction protocol" in all cases and numbers are replaced by the words "auction results protocol" in the corresponding case and number in accordance with Law No. 3985-IX of 19.09.2024 }
This Code establishes the conditions and procedure for restoring the solvency of a debtor - a legal entity or declaring it bankrupt in order to satisfy the claims of creditors, as well as restoring the solvency of an individual.
BOOK ONE. GENERAL PART
Section I. GENERAL PROVISIONS↑
Article 1. Definition of terms↑
For the purposes of this Code, the following terms are used:
preventive restructuring administrator - an arbitration manager appointed by the commercial court to carry out the preventive restructuring procedure;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
arbitration manager - an individual who has received the relevant certificate and information about whom is entered in the Unified Register of Arbitration Managers of Ukraine;
bankruptcy - the inability of a debtor, other than an insurer or a credit union, recognized by a commercial court to restore its solvency through the rehabilitation and restructuring procedure and to repay the monetary claims of creditors established in accordance with the procedure specified by this Code, other than through the application of the liquidation procedure or the procedure for repaying the debtor's debts, as well as the classification of the insurer or credit union in accordance with the decision of the National Bank of Ukraine into the category of insolvent in accordance with the Law of Ukraine "On Insurance" or the Law of Ukraine "On Credit Unions";
{Paragraph of part one of Article 1 as amended by Law No. 2971-IX of March 20, 2023 ; as amended by Law No. 3254-IX of July 14, 2023 , taking into account the amendments made by Law No. 3498-IX of November 22, 2023 }
debtor - a legal entity or an individual, including an individual entrepreneur, who is unable to fulfill his or her monetary obligations, the due date for which has come;
Monetary obligation (debt) - the debtor's obligation to pay a certain amount of money to the creditor in accordance with a civil law transaction (contract) and on other grounds provided for by the legislation of Ukraine. Monetary obligations also include obligations to pay taxes, fees (mandatory payments), insurance contributions for mandatory state pension and other social insurance; obligations arising from the impossibility of fulfilling obligations under storage, contract, hire (lease), rent, etc. agreements and which must be expressed in monetary units. The composition of the debtor's monetary obligations, including obligations to pay taxes, fees (mandatory payments), insurance contributions for mandatory state pension and other social insurance, does not include a penalty (fine, penalty) and other financial sanctions determined as of the date of filing an application with the economic court, as well as obligations arising from causing harm to the life and health of citizens, obligations to pay royalties, obligations to the founders (participants) of the debtor - a legal entity, arising from such participation. The composition and amount of monetary obligations, including the amount of debt for transferred goods, performed work and provided services, the amount of loans, including interest, which the debtor is obliged to pay, are determined as of the date of filing an application with the economic court to initiate proceedings in a bankruptcy (insolvency) case, unless otherwise established by this Code. When filing an application to initiate bankruptcy (insolvency) proceedings, the amount of monetary obligations is determined on the date of filing such an application with the commercial court;
{Paragraph of part one of Article 1 as amended by Law No. 2971-IX of 20.03.2023 }
threat of insolvency - the financial and economic condition of the debtor, characterized by the presence of circumstances confirming that the debtor will not be able to fulfill his monetary obligations within the period provided for their fulfillment or make payments under ordinary business transactions within the next 12 months;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
interested persons in relation to the debtor - a legal entity created with the participation of the debtor, a legal entity that exercises or has exercised control over the debtor for the past three years, a legal or natural person over whom the debtor exercises or has exercised control over the debtor for the past three years, a legal entity with which the debtor is or has been under the control of a third party for the past three years, owners (participants, shareholders) of the debtor, the debtor's manager, persons who are members of the debtor's management bodies, the debtor's chief accountant (bookkeeper), including those dismissed from work three years before the opening of bankruptcy proceedings; persons with whom or for whose benefit the debtor has entered into transactions to alienate the debtor's property that do not meet the criteria of reasonableness (economic feasibility, presence of a business purpose) and good faith; a party to a fraudulent transaction committed by the debtor or a transaction that has been declared invalid in accordance with Article 42 of this Code; as well as persons who are in family relations with the specified persons and the individual debtor, namely: spouses and their children, parents, brothers, sisters, grandchildren, as well as other persons in respect of whom there are reasonable grounds to consider them interested. For the purposes of this Code, interested persons in respect of the arbitration manager or creditors shall be persons in the same meaning as interested persons in respect of the debtor. A creditor is also interested in respect of the debtor if, within six months prior to the date of opening proceedings in a bankruptcy (insolvency) case or preventive restructuring procedure, he directly or indirectly acquired the right to claim against the debtor from a creditor interested in respect of the debtor;
{Paragraph of part one of Article 1 as amended by Law No. 3985-IX of September 19, 2024 }
involved creditors - creditors in the preventive restructuring procedure, including those secured by the debtor's property, whose claims, rights and interests are directly affected by the preventive restructuring plan;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
significant transactions - transactions relating to property (works, services), the market value of which on the date of the transaction is 10 percent or more of the value of the debtor's assets according to the latest annual financial statements. If instead of several transactions, the debtor could have made one significant transaction, then each of such transactions is considered significant;
liquidation manager - an arbitration manager appointed by a commercial court in a case of insolvency of an individual to realize the bankrupt's property and satisfy the creditors' claims;
restructuring manager - an arbitration manager appointed by a commercial court in a case of insolvency of an individual to restructure the debtor's debts;
rehabilitation manager - an arbitration manager, and in cases provided for by this Code - the manager of the debtor appointed by the commercial court to carry out the procedure for rehabilitation of the debtor;
creditor - a legal entity or individual, as well as a regulatory body authorized in accordance with the Tax Code of Ukraine to take measures to ensure the repayment of tax debt and arrears in payment of a single contribution to mandatory state social insurance within the limits of its powers, and other state bodies that have claims on monetary obligations to the debtor, as well as an administrator for the issue of bonds, which, in accordance with the Law of Ukraine "On Capital Markets and Organized Commodity Markets", acts in the interests of bondholders who have claims on monetary obligations to the debtor, confirmed in accordance with the established procedure by documents; secured creditors - creditors whose claims to the debtor or another person are secured by a pledge of the debtor's property; bankruptcy creditors - creditors for claims to the debtor that arose before the opening of bankruptcy proceedings and the execution of which is not secured by a pledge of the debtor's property; current creditors - creditors under claims against the debtor that arose after the opening of bankruptcy proceedings;
{Paragraph of Article 1 as amended by Law No. 738-IX of 06/19/2020 }
liquidator - an arbitration manager appointed by the commercial court to carry out the liquidation procedure;
best interests of creditors - a criterion in the preventive restructuring procedure, which means that no involved creditor will be in a worse position in terms of the amount and/or timing of satisfaction of their claims under the preventive restructuring plan than if their claims were satisfied in the liquidation procedure within the bankruptcy case or in the best alternative scenario if the preventive restructuring plan is rejected by the court;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
insolvency - the inability of a debtor (other than an insurer or a credit union) to fulfill monetary obligations to creditors after the established deadline, only through the application of procedures provided for by this Code, or the insolvency of an insurer established by the National Bank of Ukraine in accordance with the Law of Ukraine "On Insurance" or the insolvency of a credit union in accordance with the Law of Ukraine "On Credit Unions";
{Paragraph of part one of Article 1 as amended by Law No. 3254-IX of 14.07.2023 }
new financing - a loan, credit or other financial assistance provided to a debtor by an existing or new creditor in a preventive restructuring procedure, which is provided for by a court-approved preventive restructuring plan and is intended for the implementation of this plan;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
official publication - publication of information about the bankruptcy case on the official web portal of the judiciary of Ukraine;
settled creditors' claims - satisfied creditors' claims, as well as obligations terminated in accordance with this Code;
{Paragraph of part one of Article 1 as amended by Law No. 2971-IX of 03/20/2023 }
repayment of the debtor's debts - a judicial procedure in a case of insolvency of an individual, applied in order to satisfy the claims of creditors by selling the property of the debtor, declared bankrupt in accordance with the procedure established by this Code;
{Paragraph of part one of Article 1 as amended by Law No. 2971-IX of 20.03.2023 }
transactions in which there is an interest - transactions to which interested persons from the debtor's side, the arbitration manager or creditors are parties;
preventive restructuring - a system of organizational, economic, managerial, investment, technical, financial, economic, and legal measures aimed at preventing or averting the insolvency of the debtor, which may include changing the composition, conditions, or structure of the debtor's assets and liabilities, as well as any necessary operational changes or a combination of these elements, which are carried out in accordance with the preventive restructuring plan;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
representative of the debtor's employees - a person authorized by a general meeting (conference) attended by at least half of the debtor's full-time employees, or by a relevant decision of the debtor's primary trade union organization (if there are several primary organizations - by their joint decision) to represent the interests of the debtor's employees during bankruptcy proceedings with the right to an advisory vote or in the preventive restructuring procedure;
{Paragraph of part one of Article 1 as amended by Law No. 3985-IX of September 19, 2024 }
interim financing - financial assistance to the debtor (loan, credit), a guarantee of the debtor's performance of obligations, etc., which ensures the functioning of the debtor until the commercial court approves the preventive restructuring plan and is necessary for the debtor to continue its activities (conducting ordinary business activities) or to preserve or increase the value of the debtor's assets;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
Debt restructuring - a legal procedure in a case of insolvency of an individual, applied with the aim of restoring the debtor's solvency by changing the method and procedure for fulfilling his obligations in accordance with the debtor's debt restructuring plan;
property administrator - an arbitration manager appointed by a commercial court to carry out the property disposal procedure;
Sanation - a system of measures provided for by this Code, carried out during bankruptcy proceedings in order to restore the debtor's solvency, aimed at improving the financial and economic condition of the debtor, as well as satisfying the creditors' claims in full or in part;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
automated system "Bankruptcy and Insolvency" - a set of software, hardware and telecommunications tools that ensure the collection, storage, accounting, search, generalization, provision of information on the progress of proceedings in a bankruptcy (insolvency) case and financial and economic indicators of the debtor, the formation of the Unified Register of debtors in respect of whom proceedings in a bankruptcy (insolvency) case have been opened, the Unified Register of Arbitration Managers of Ukraine, the functioning of the electronic office of the arbitration manager and protection from unauthorized access. The right to access information about the debtor contained in the closed part of the Unified Register of debtors in respect of whom proceedings in a bankruptcy (insolvency) case have been opened is held by bankruptcy creditors, secured creditors, investors, as well as current creditors (from the moment the economic court adopts a resolution on declaring the debtor bankrupt) in accordance with the procedure determined by the state body for bankruptcy;
{Paragraph of part one of Article 1 as amended by Law No. 2971-IX of 03/20/2023 }
parties to the bankruptcy (insolvency) case - bankruptcy creditors (chairman of the creditors' committee), secured creditors, debtor (bankrupt);
{Paragraph of part one of Article 1 as amended by Law No. 2971-IX of 03/20/2023 }
authorized person of the founders (participants, shareholders) of the debtor - a person authorized by the highest management body of the debtor to represent the interests of the founders during the bankruptcy proceedings with the right to an advisory vote;
authorized person of the founders (participants, shareholders) of the debtor - a person authorized by the highest management body of the debtor to represent the interests of the founders during proceedings in a bankruptcy case with the right to an advisory vote or in the preventive restructuring procedure;
{Part one of Article 1 is supplemented with a term in accordance with Law No. 3985-IX of September 19, 2024 }
participants in a bankruptcy (insolvency) case - the parties, the arbitration manager, the state bankruptcy authority, other participants in the bankruptcy case, regarding whose rights or obligations there is a dispute, as well as in cases provided for by this Code, the State Property Fund of Ukraine, the National Bank of Ukraine, the National Securities and Stock Market Commission, a representative of a local government body, a representative of the debtor's employees, an authorized person of the founders (participants, shareholders) of the debtor.
{Paragraph of Article 1 as amended by Law No. 738-IX of 06/19/2020 ; as amended by Laws No. 2971-IX of 03/20/2023 , No. 3254-IX of 07/14/2023 taking into account the amendments made by Law No. 3498-IX of 22.11.2023 }
The term "portal of electronic services of legal entities, individual entrepreneurs and public organizations" is used in the meaning given in the Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs and Public Organizations".
The terms "actual conflict of interest" and "potential conflict of interest" are used in this Code in the meanings given in the Law of Ukraine "On Prevention of Corruption";
{Part Three of Article 1 as amended by Law No. 2971-IX of 03/20/2023 }
The term "budgetary institution" is used in the meaning given in the Budget Code of Ukraine.
{Article 1 is supplemented by part four in accordance with Law No. 686-IX of 05.06.2020 }
The terms "bond issue administrator" , "derivative contract" , "master agreement" , "meeting of bondholders" , "professional participant in capital markets" and "professional participant in organized commodity markets" are used in this Code in the meanings given in the Law of Ukraine "On Capital Markets and Organized Commodity Markets".
{Article 1 is supplemented by part four in accordance with Law No. 738-IX of 06/19/2020 ; part four of Article 1 shall be considered part five in accordance with Law No. 2971-IX of 03/20/2023 }
The terms "micro-enterprise entities" and "small business entities" are used in this Code in the meanings given in the Commercial Code of Ukraine .
{Article 1 is supplemented by part six in accordance with Law No. 3985-IX of September 19, 2024 }
Article 2. Legislation governing bankruptcy proceedings↑
1. Proceedings in bankruptcy cases are regulated by this Code, the Commercial Procedural Code of Ukraine , and other laws of Ukraine.
The application of the provisions of the Commercial Procedural Code of Ukraine and other legislative acts of Ukraine shall be carried out taking into account the features provided for by this Code.
{Part one of Article 2 is supplemented by paragraph two in accordance with Law No. 2971-IX of 20.03.2023 }
2. Legislation on the restoration of the debtor's solvency or declaring him bankrupt does not apply to banks that are withdrawn from the market or liquidated in accordance with the laws of Ukraine "On Banks and Banking Activities" and "On the System of Guaranteeing Deposits of Individuals" .
Proceedings in a case on declaring an issuer of mortgage bonds insolvent (bankrupt) shall be carried out in accordance with the procedure provided for by this Code, taking into account the provisions of the Law of Ukraine "On Mortgage Bonds".
Proceedings in a case on declaring a collective investment institution insolvent (bankrupt) shall be carried out in accordance with the procedure provided for by this Code, taking into account the provisions of the Law of Ukraine "On Collective Investment Institutions".
Proceedings in a case on declaring a business entity, which is a party to a contract on financial instruments and/or a party to one or more derivative contracts, insolvent (bankrupt), are carried out taking into account the specifics provided for by law.
{Part two of Article 2 is supplemented by paragraph four in accordance with Law No. 738-IX of June 19, 2020 }
If a bond issue administrator is appointed, the proceedings in bankruptcy cases of debtors who are issuers of the relevant bonds, as well as debtors who provide security for the bonds (hereinafter referred to as the debtor who has obligations under the bonds), shall be regulated by this Code, taking into account the features established by the Law of Ukraine "On Capital Markets and Organized Commodity Markets".
{Part two of Article 2 is supplemented by paragraph five in accordance with Law No. 738-IX of June 19, 2020 }
3. Proceedings in bankruptcy cases of certain categories of debtors shall be regulated taking into account the features provided for by this Code.
4. Proceedings in bankruptcy cases of debtors - state-owned enterprises, state non-profit enterprises, state non-profit companies and budgetary institutions, as well as the rehabilitation of such debtors before the opening of bankruptcy proceedings are not allowed.
{Part Four of Article 2 as amended by Laws No. 686-IX of 05.06.2020 , No. 1962-IX of 15.12.2021 ; as amended by Law No. 4114-IX of 04.12.2024 ; as amended by Law No. 4196-IX of 09.01.2025 }
5. Proceedings in bankruptcy cases of debtors who carry out activities related to state secrets shall be carried out taking into account the specifics provided for by the legislation on state secrets.
6. Proceedings in bankruptcy (insolvency) cases involving non-resident creditors are regulated by this Code, unless otherwise provided for by international treaties of Ukraine, the binding nature of which has been approved by the Verkhovna Rada of Ukraine.
{Part Six of Article 2 as amended by Law No. 2971-IX of March 20, 2023 }
7. The procedure for the enforcement in Ukraine of judgments of foreign courts in bankruptcy cases is determined by international treaties of Ukraine, the binding nature of which has been approved by the Verkhovna Rada of Ukraine.
In the absence of international treaties of Ukraine, decisions of courts of foreign states in bankruptcy cases are recognized in the territory of Ukraine on the principle of reciprocity, unless otherwise provided by law.
8. Relations regarding the adoption, entry into force, administrative appeal, execution, termination of the effect of administrative acts in the field of bankruptcy are regulated by the Law of Ukraine "On Administrative Procedure", taking into account the features defined by this Code.
{Article 2 is supplemented by part eight in accordance with Law No. 4017-IX of 10.10.2024 }
8. Amendments to this Code may be made exclusively by laws amending the Code of Ukraine on Bankruptcy Procedures.
{Article 2 is supplemented by part eight in accordance with Law No. 3985-IX of 19.09.2024 }
Article 3. State Bankruptcy Authority↑
1. The State Bankruptcy Authority:
promotes the creation of organizational, economic, and other conditions necessary for the implementation of procedures for restoring the debtor's solvency or declaring him bankrupt, including bankruptcy procedures for state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state;
organizes a system of training, retraining and advanced training of arbitration managers;
establishes requirements for obtaining a certificate of the right to carry out the activities of an arbitration manager;
forms and maintains the Unified Register of Arbitration Managers of Ukraine, the Unified Register of Debtors in Respect of Whom Bankruptcy (Insolvency) Proceedings Have Been Initiated, which are components of the automated system "Bankruptcy and Insolvency", and establishes the procedure for submitting data (information) necessary for maintaining the specified registers;
{Paragraphs five and six of part one of Article 3 are replaced by one paragraph in accordance with Law No. 2971-IX of 20.03.2023 }
establishes the procedure for monitoring the activities of arbitration managers, checking the organization of their work, and their compliance with the requirements of bankruptcy legislation;
establishes the procedure for conducting an analysis of the financial and economic condition of business entities regarding the presence of signs of fictitious bankruptcy, bringing to bankruptcy, concealment of persistent financial insolvency, illegal actions in the event of bankruptcy and organizes the conduct of such an analysis when initiating proceedings in bankruptcy cases of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state;
determines and approves a sample form of a rehabilitation and restructuring plan;
draws up conclusions at the request of the court, prosecutor's office or other authorized body on the presence of signs of fictitious bankruptcy, bringing to bankruptcy, concealment of persistent financial insolvency, illegal actions in the event of bankruptcy;
{Paragraph of part one of Article 3 excluded on the basis of Law No. 157-IX of 03.10.2019 }
develops and approves standard documents for conducting bankruptcy procedures, methodological recommendations;
determines the requirements for the form and procedure for maintaining the register of creditors' claims;
exercises other powers provided for by law.
2. The State Bankruptcy Authority in the field of insolvency prevention:
ensures the formation and implementation of state policy in the field of preventing insolvency of debtors, including persons subject to preventive restructuring procedures;
ensures the posting of information on the website of the state bankruptcy authority about early insolvency detection tools and the preventive restructuring procedure;
determines and approves a standard form of a preventive restructuring plan for micro-enterprises and small businesses ;
determines the procedure and deadlines for submitting by the debtor, in respect of whom the preventive restructuring procedure is being carried out, or by the preventive restructuring administrator (in the event of his appointment by the court) information necessary for posting on the website of the state bankruptcy authority;
develops and approves standard documents for conducting the preventive restructuring procedure, methodological recommendations;
approves a standard form of agreement with the preventive restructuring administrator ;
exercises other powers provided for by law.
{Article 3 is supplemented by part two in accordance with Law No. 3985-IX of 19.09.2024 }
3. The following information on insolvency prevention shall be posted on the website of the state bankruptcy authority:
about the available tools of the insolvency early warning system;
on procedures and measures relating to preventive restructuring;
information materials, methodological recommendations and a checklist of conditions for preparing preventive restructuring plans, adapted to the needs and specifics of micro- and small businesses, which are published in Ukrainian and English or another official language of the European Union.
{Article 3 is supplemented by part three in accordance with Law No. 3985-IX of September 19, 2024 }
4. The state bankruptcy authority shall ensure, on an annual basis, the collection, generalization and posting on its website of statistical information on preventive restructuring procedures, bankruptcy and insolvency of an individual. The procedure for collecting information shall be determined by the state bankruptcy authority.
{Article 3 is supplemented by part four in accordance with Law No. 3985-IX of 19.09.2024 }
Article 4. Measures to prevent the insolvency of the debtor↑
1. The executive body of the debtor, and in the case of state and municipal enterprises, also the body authorized to manage the debtor's property, are obliged, within the limits of their powers, to promptly identify and take measures to prevent and respond to the occurrence of the debtor's insolvency.
2. If the auditor, accountant providing services to the debtor, or the debtor's accountant, based on the results of preparing tax reports, discovers signs of insolvency or its threat, such persons shall notify the debtor thereof within 10 days.
3. In the event of signs of insolvency or the threat thereof, as well as in the event of the debtor receiving a notification from the persons specified in part two of this article, the debtor's manager shall be obliged, no later than 30 days from the date of receipt of the relevant information, to send information on the presence of signs of insolvency or the threat thereof to the founders (participants, shareholders) of the debtor, the owner of the property (the body authorized to manage the property) of the debtor, as well as other management bodies within the competence of which the resolution of these issues falls.
4. The executive body of the debtor, and in cases provided for by law - the founders (participants, shareholders) of the debtor, the owners of the property (the body authorized to manage the property) of the debtor, are obliged to take measures to prevent the insolvency of the debtor, including the implementation of extrajudicial settlement of the debt, initiation of the procedure for preventive restructuring of the debtor, initiation of the restructuring procedure in accordance with the Law of Ukraine "On Financial Restructuring" or, in cases provided for by this Code, to make a decision to apply to the commercial court with an application to initiate bankruptcy proceedings. In case of failure to implement or improper implementation of the specified measures, the persons specified in this part shall be liable in cases provided for by law.
5. Measures to prevent the bankruptcy of a debtor-insurer shall be taken in accordance with the procedure established by the Law of Ukraine "On Insurance".
6. Measures to prevent bankruptcy of a debtor - a credit union shall be taken in accordance with the procedure established by the Law of Ukraine "On Credit Unions".
{Article 4 as amended by Laws No. 1909-IX of 11/18/2021 , No. 3254-IX of 07/14/2023 ; as amended by Law No. 3985-IX of 09/19/2024 }
Article 5. {Article 5 is deleted on the grounds of Law No. 4114-IX of 04.12.2024 }↑
Article 6. Judicial procedures applicable to the debtor↑
1. In accordance with this Code, the following judicial procedures shall apply to a debtor who is a legal entity:
disposal of the debtor's property;
debtor rehabilitation;
liquidation of a bankrupt.
2. In accordance with this Code, the following judicial procedures shall apply to a debtor who is an individual:
restructuring of the debtor's debts;
repayment of the debtor's debts.
The procedure for repaying the debtor's debts is introduced in an insolvency case together with the declaration of the debtor as bankrupt.
3. Procedures for the rehabilitation of a debtor or the liquidation of a bankrupt shall be carried out in compliance with the requirements of the legislation on the protection of economic competition.
4. When conducting judicial procedures against a debtor in order to reduce the time of proceedings in a bankruptcy (insolvency) case, the commercial court is guided by the principle of procedural economy.
{Article 6 is supplemented by part four in accordance with Law No. 2971-IX of 20.03.2023 }
Article 7. Procedure for considering disputes in which the debtor is a party↑
1. Disputes to which the debtor is a party shall be considered by a commercial court in accordance with the rules provided for by the Commercial Procedural Code of Ukraine , taking into account the features defined by this article.
2. The commercial court, in the proceedings of which a bankruptcy (insolvency) case is pending, shall, within the framework of this case, resolve all property disputes to which the debtor is a party; disputes with claims against the debtor and regarding his property; disputes on the invalidation of the results of the auction; disputes on the invalidation of any transactions concluded by the debtor; disputes on the return (recovery) of the debtor's property or compensation for its value, respectively; disputes on compensation for damage and/or losses caused to the debtor; disputes on the recovery of wages; disputes on the reinstatement of the debtor's officials and employees; disputes on other claims against the debtor, including disputes on the determination and payment (recovery) of monetary obligations (tax debt) determined in accordance with the Tax Code of Ukraine .
{Paragraph one of part two of Article 7 as amended by Laws No. 2971-IX of March 20, 2023 , No. 3249-IX of July 13, 2023 ; as amended by Law No. 3985-IX of September 19, 2024 }
The composition of the participants in the dispute is determined in accordance with the Commercial Procedural Code of Ukraine .
The Commercial Court considers disputes in which the debtor is a party, according to the rules specified in the Commercial Procedural Code of Ukraine . Based on the results of the consideration of the dispute, the court adopts a decision.
Applications (claims) of participants in bankruptcy (insolvency) proceedings or other persons in disputes to which the debtor is a party are considered within the bankruptcy (insolvency) case according to the rules of simplified claim proceedings.
{Part two of Article 7 is supplemented with a new paragraph in accordance with Law No. 2971-IX of 03/20/2023 }
The plaintiff has the right to state in the statement of claim a motivated request for consideration of the case under the rules of general claim proceedings. If, based on the results of consideration of the plaintiff's request, the court concludes that the case should be considered under the general claim proceedings, it shall note this in the ruling on the initiation of proceedings in the case.
{Part two of Article 7 is supplemented with a new paragraph in accordance with Law No. 2971-IX of 03/20/2023 }
If the defendant in such a dispute is a subject of government authority, the court is guided by the principle of official clarification of all circumstances in the case and takes measures specified by law necessary to clarify all circumstances in the case, including identifying and requesting evidence, on its own initiative.
3. The materials of the case in which the debtor is a party, regarding the disputes specified in part two of this article, the proceedings in which were opened before or after the opening of proceedings in the bankruptcy (insolvency) case, at the initiative of a participant in the case or the court, shall be sent immediately, but no later than five working days, to the commercial court in whose proceedings the bankruptcy (insolvency) case is pending, which shall consider the dispute on the merits within the framework of this case.
{Part Three of Article 7 as amended by Law No. 2971-IX of 03/20/2023 }
4. If the commercial court, when considering a dispute regarding the recovery of funds from a debtor within the framework of a bankruptcy (insolvency) case, establishes that the plaintiff in such a dispute has filed a statement with monetary claims against the debtor in the bankruptcy (insolvency) case, the commercial court shall leave such claim without consideration.
{Article 7 is supplemented by part four in accordance with Law No. 2971-IX of 20.03.2023 }
Article 8. Jurisdiction, liability, grounds for initiating bankruptcy (insolvency) proceedings↑
{Title of Article 8 as amended by Law No. 2971-IX of 03/20/2023 }
1. Bankruptcy (insolvency) cases shall be considered by commercial courts at the location of the debtor - a legal entity, the place of residence of an individual or an individual - an entrepreneur. A change in the debtor's registered location or place of residence after the creditor or debtor has filed an application to initiate bankruptcy (insolvency) proceedings shall not affect the change in the territorial jurisdiction of the commercial court.
{Part one of Article 8 as amended by Law No. 2971-IX of March 20, 2023 }
2. The debtor and creditor have the right to apply to the commercial court with an application to initiate bankruptcy proceedings.
The debtor has the right to apply to the commercial court with a request to initiate insolvency proceedings.
{Part two of Article 8 is supplemented by paragraph two in accordance with Law No. 2971-IX of March 20, 2023 }
In the event of the insolvency of an insurer or credit union, the National Bank of Ukraine, the debtor (if the National Bank of Ukraine has granted such debtor permission to voluntarily exit the market), the debtor's liquidator, or the temporary administrator of the insurer or credit union appointed by the National Bank of Ukraine in accordance with the law, if the decision of the National Bank of Ukraine on the appointment of a temporary administrator provides for the right of the temporary administrator to file such an application, have the right to file such an application.
{Part two of Article 8 is supplemented with a new paragraph in accordance with Law No. 3254-IX of 14.07.2023 }
3. Proceedings in a bankruptcy (insolvency) case are opened by a commercial court upon the debtor's application, also in the event of a threat of his insolvency.
{Part Three of Article 8 as amended by Law No. 2971-IX of March 20, 2023 }
4. If the case is not within the jurisdiction of such a commercial court, the case materials shall be transferred to the commercial court with established jurisdiction in accordance with the procedure specified by the Commercial Procedural Code of Ukraine .
Article 9. Appealing court decisions in bankruptcy (insolvency) proceedings↑
{Title of Article 9 as amended by Law No. 2971-IX of 03/20/2023 }
1. Decisions of a commercial court rendered in a bankruptcy (insolvency) case based on the results of the commercial court's consideration of applications, petitions and complaints, as well as a decision to declare a debtor bankrupt and to initiate liquidation proceedings or procedures for repaying the debtor's debts, may be appealed in accordance with the procedure established by the Commercial Procedural Code of Ukraine , taking into account the features provided for by this Code.
{Part one of Article 9 as amended by Law No. 2971-IX of 03/20/2023 }
2. The resolution declaring the debtor bankrupt and initiating liquidation proceedings/debt repayment proceedings, as well as all resolutions of the local commercial court adopted in a bankruptcy (insolvency) case, may be appealed, except for cases provided for by the Commercial Procedural Code of Ukraine and this Code.
{Part two of Article 9 as amended by Law No. 2971-IX of 20.03.2023 }
3. In cassation proceedings, the resolutions of the commercial court of appeal adopted as a result of the review of court decisions are not subject to appeal, except for: a resolution on the opening of proceedings in a bankruptcy (insolvency) case, a resolution of a preliminary meeting, resolutions based on the results of consideration of monetary claims of creditors submitted after the expiration of the period established for their submission, a resolution on the approval of a rehabilitation plan in a bankruptcy case, a resolution on the approval of a plan for restructuring the debtor's debts in a case of insolvency of an individual, a resolution on the closure of proceedings in a bankruptcy (insolvency) case, as well as resolutions on declaring the debtor bankrupt and opening liquidation proceedings or a procedure for repaying the debtor's debts and decisions adopted as a result of consideration of applications submitted within the framework of proceedings in a bankruptcy (insolvency) case.
Complaints against the decisions of the appellate commercial courts, adopted as a result of the appeal of the decisions of the commercial court in bankruptcy cases, which are not subject to appeal in cassation separately, may be included in the cassation appeal against the decisions, rulings in bankruptcy (insolvency) cases, which are subject to appeal.
{Part Three of Article 9 as amended by Laws No. 2971-IX of 03/20/2023 , No. 3985-IX of 09/19/2024 }
4. Decisions and resolutions declaring a debtor bankrupt and initiating liquidation proceedings or proceedings for repayment of the debtor's debts adopted by a commercial court in a bankruptcy (insolvency) case shall enter into force from the moment of their adoption, unless otherwise provided for by this Code.
{Part Four of Article 9 as amended by Law No. 2971-IX of March 20, 2023 }
5. Appealing court decisions in bankruptcy (insolvency) proceedings does not stay the proceedings in the bankruptcy (insolvency) case.
{Paragraph one of part five of Article 9 as amended by Law No. 2971-IX of March 20, 2023 }
The case materials shall be sent to the court of appeal or cassation in the part required by the decision of the court of appeal or cassation. The court considering the appeal or cassation complaint may require the bankruptcy (insolvency) case in its entirety on its own initiative. Duly certified copies of the case or parts of the case shall remain with the commercial court for further proceedings in the bankruptcy (insolvency) case.
{Part five of Article 9 is supplemented by paragraph two in accordance with Law No. 2971-IX of March 20, 2023 }
The bankruptcy (insolvency) case materials relating to the application (claim) filed (filed) in accordance with the procedure specified in Article 7 of this Code shall be sent by the commercial court to the appellate or cassation court in full. Duly certified copies of the case shall remain with the commercial court for further proceedings in the bankruptcy (insolvency) case.
{Part five of Article 9 is supplemented by paragraph three in accordance with Law No. 2971-IX of March 20, 2023 }
Article 9 - 1. Liability for Violations of Bankruptcy Legislation↑
1. In cases provided for by this Code, the debtor, its founders (participants, shareholders), the owner of the property (the body authorized to manage the property), as well as other persons shall bear civil, administrative or criminal liability for violation of the requirements of bankruptcy legislation, in particular fictitious bankruptcy, concealment of bankruptcy or intentional bringing about bankruptcy, illegal actions in the event of bankruptcy.
2. A fictitious bankruptcy is a knowingly false statement by a debtor about his inability to fulfill his obligations to creditors. Having established the fact of fictitious bankruptcy, that is, the debtor's actual solvency, the court shall close the proceedings in the case. In such a case, the debtor shall be obliged to compensate the creditors for the losses caused by the delay in fulfilling his monetary obligations, and the relevant person of the debtor shall bear administrative liability as provided for by law.
3. The persistent insolvency of the debtor caused by intentional actions (inaction) of the manager (management bodies), the owner of the property (the body authorized to manage the property), as well as other persons, if this caused material damage to the interests of the state, society or the interests of creditors and the debtor was declared bankrupt by the commercial court, is recognized as bankruptcy.
4. Concealment of bankruptcy shall be deemed to be intentional failure by the head (management body) of the debtor to fulfill the obligation stipulated by this Code within the specified period to apply to the commercial court with an application to initiate bankruptcy proceedings in the event of the debtor's persistent financial insolvency and the opening of bankruptcy proceedings by the commercial court upon the application of the creditor.
{Chapter I of Book One supplemented by Article 9 - 1 in accordance with Law No. 4196-IX of 09.01.2025 }
BOOK TWO. ARBITRATION MANAGER
Section I. ARBITRATION MANAGER↑
Article 10. Organization of the activities of the arbitration manager↑
1. The arbitration manager is a subject of independent professional activity.
2. From the moment of the issuance of a resolution (order) on his appointment as a rehabilitation manager or liquidator until the moment of termination of his powers, the arbitration manager is equated with an official of the debtor enterprise.
The same person may exercise the powers of an arbitration manager at all stages of bankruptcy proceedings in accordance with the requirements of this Code.
3. The right to carry out the activities of an arbitration manager is granted to a person who has received the relevant certificate in accordance with the procedure established by this Code and is entered in the Unified Register of Arbitration Managers of Ukraine.
4. At enterprises that carry out activities related to state secrets, the arbitration manager must have access to state secrets, and in the absence of such access, obtain such access in accordance with the procedure established by law.
Article 11. Requirements for the arbitration manager↑
1. An arbitration manager may be a citizen of Ukraine who has a higher legal or economic education of the second (master's) level, a total work experience in the specialty of at least three years or at least one year after receiving the relevant higher education in managerial positions, has completed training and internship for six months in accordance with the procedure established by the state body for bankruptcy, speaks the state language and has passed a qualification exam.
2. The following persons may not be an arbitration manager:
1) is recognized by a court as having limited civil capacity or incapacitated;
2) who has a criminal record that has not been expunged or cleared in accordance with the procedure established by law;
3) who is unable to perform the duties of an arbitration manager due to health reasons;
4) who is prohibited from holding managerial positions or who is considered to be subject to administrative sanctions in the form of deprivation of the right to hold certain positions or engage in certain activities related to the performance of state or local government functions, or activities equivalent to such activities;
{Clause 4 of Part Two of Article 11 as amended by Law No. 2971-IX of March 20, 2023 }
5) to whom a disciplinary sanction has been applied in the form of deprivation of the right to carry out the activities of an arbitration manager, less than three years have passed since the date of application of which.
{Part two of Article 11 is supplemented by paragraph 5 in accordance with Law No. 3985-IX of September 19, 2024 }
3. The arbitration manager has a certificate and a seal, the description and procedure for using which are established by the state bankruptcy authority.
4. An arbitration manager shall improve his/her qualifications once every two years in accordance with the procedure established by the state body for bankruptcy. An arbitration manager in cases of bankruptcy of non-banking financial institutions shall be obliged to improve his/her qualifications once every two years in accordance with the procedure established by the state body for bankruptcy in agreement with the National Bank of Ukraine or the National Securities and Stock Market Commission in accordance with the division of powers determined by the Law of Ukraine "On Financial Services and Financial Companies". The National Bank of Ukraine and the National Securities and Stock Market Commission, together with the state body for bankruptcy, shall participate in the system of training, retraining and advanced training of arbitration managers in cases of bankruptcy of non-banking financial institutions.
{Part Four of Article 11 as amended by Law No. 3254-IX of 14.07.2023 }
Article 12. Rights and obligations of the arbitration manager↑
1. The arbitration manager shall enjoy all the rights of a property administrator, rehabilitation manager, restructuring manager, sales manager, and liquidator in accordance with the legislation, including the right to:
1) apply to court in cases provided for by this Code;
{Clause 1 of Part One of Article 12 as amended by Law No. 2971-IX of March 20, 2023 }
2) convene meetings and a creditors' committee and participate in them with the right to an advisory vote;
2 - 1 ) hold meetings and sessions of the creditors' committee in the event of their inaction or on their behalf;
{Part one of Article 12 is supplemented by paragraph 2 - 1 in accordance with Law No. 2971-IX of March 20, 2023 }
3) receive remuneration in the amount and in the manner provided for by this Code;
4) to engage other persons and specialized organizations on a contractual basis to ensure the performance of their powers, with payment for their activities at the expense of the debtor, unless otherwise established by this Code or an agreement with creditors;
5) address requests of the arbitration manager, including those regarding obtaining copies of documents, to state authorities, local self-government bodies, their officials and service personnel, enterprises, institutions, including banks, non-bank payment service providers, electronic money issuers, depository institutions and other professional participants in capital markets, organizations, public associations, as well as individuals;
{Clause 5 of Part One of Article 12 as amended by Law No. 3249-IX of 13.07.2023 }
5 - 1 ) receive from banks, non-bank payment service providers, electronic money issuers, depository institutions and other professional participants in the capital markets information on the availability of accounts and/or the balance of funds on the debtor's accounts (including securities accounts) / electronic wallets, the movement of funds and transactions on the debtor's accounts (including securities accounts) / electronic wallets, as well as information on the debtor's contracts for the storage of valuables or the provision of an individual bank safe to the debtor for property lease (rent);
{Part one of Article 12 is supplemented by paragraph 5 - 1 in accordance with Law No. 3249-IX of 13.07.2023 }
6) obtain information from state registers;
7) submit an application to the commercial court for early termination of their powers;
8) exercise other powers provided for by this Code.
2. The arbitration manager shall be obliged to:
1) strictly comply with the requirements of the law;
2) take measures to protect the debtor's property;
3) conduct an analysis of the financial and economic condition, investment and other activities of the debtor and the debtor's market position and submit the results of such analysis to the commercial court together with documents confirming the relevant information;
4) submit data, documents and information regarding the activities of the arbitration manager in accordance with the procedure established by law;
4 - 1 ) at the request of the commercial court and the state bankruptcy authority, provide data, documents and information regarding the exercise of powers to conduct judicial proceedings;
{Part two of Article 12 is supplemented by paragraph 4 - 1 in accordance with the Law No. 3985-IX dated 19.09.2024 }
5) submit data (information) on the financial condition of debtors in respect of whom bankruptcy (insolvency) proceedings have been opened, and on the progress of bankruptcy (insolvency) proceedings to the Unified Register of Debtors in Respect of Whom Bankruptcy (Insolvency) Proceedings Have Been Opened, the closed part of which is accessible to bankruptcy and secured creditors, investors, and current creditors (from the moment the commercial court adopts a resolution declaring the debtor bankrupt and initiating liquidation proceedings or the procedure for repaying the debtor's debts), and ensure that such information is updated in accordance with the procedure and within the time limits determined by the state bankruptcy authority. Information on the financial condition of the debtor and the progress of bankruptcy (insolvency) proceedings includes information on:
{Paragraph one of clause 5 of part two of Article 12 as amended by Law No. 2971-IX of 03/20/2023 }
significant transactions or transactions with interest concluded by the debtor or on his behalf (names of the parties, nature of the obligations, value of the property transferred under the transaction, term of fulfillment of obligations);
inventory of the debtor's property (start and end dates of the inventory);
debtors of the debtor, the amount of debt of which exceeds 5 percent of the total claims of bankruptcy creditors (indicate the name or surname, location or place of residence, identification code of the legal entity or registration number of the taxpayer's registration card (if any) and the amount of debt);
encumbrance of the debtor's property (object of encumbrance, type of encumbrance, body or person in whose interests the encumbrance is imposed, grounds for imposing the encumbrance);
register of creditors' claims;
deadlines for implementing the rehabilitation plan (for the rehabilitation manager) or the restructuring plan (for the restructuring manager);
analysis of the debtor's financial and economic activities;
date, time and place of the creditors' meeting and the creditors' committee (noted no later than three business days before the date of such meeting);
texts of decisions of the creditors' meeting and committee (submitted within three working days from the date of adoption of the relevant decision);
the text of the court-approved rehabilitation plan or restructuring plan (submitted within three working days from the date of approval of the plan by the court);
declaration of the property status of the debtor - an individual;
6) create conditions for verifying the arbitration manager's compliance with the requirements of the law;
7) take measures to ensure the protection of state secrets in accordance with the requirements established by law;
{Clause 8 of part two of Article 12 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
9) take measures to prevent any possibility of a real or potential conflict of interest and immediately notify the court of the existence of such a conflict of interest;
{Clause 9 of Part Two of Article 12 as amended by Law No. 2971-IX of March 20, 2023 }
10) send to law enforcement agencies, bodies specially authorized in the field of combating corruption, and the Security Service of Ukraine reports on facts of violations of the law identified in the activities of employees of enterprises and organizations that contain signs of action (inaction) prosecuted in a criminal or administrative manner;
{Clause 10 of Part Two of Article 12 as amended by Law No. 2971-IX of March 20, 2023 }
11) perform other powers provided for by law.
3. When exercising his rights and obligations, the arbitration manager is obliged to act in good faith, prudently and for the purpose for which these rights and obligations were granted (imposed).
4. When exercising his rights and obligations, the arbitration manager is obliged to comply with the requirements of the Law of Ukraine "On Prevention of Corruption" regarding the restriction of the use of his powers for the purpose of obtaining an improper benefit or accepting an offer of such a benefit for himself or other persons, and receiving gifts (donations).
5. Violation by the arbitration manager of the requirements of the Law of Ukraine "On Prevention of Corruption", as well as the emergence of a real or potential conflict of interest during the exercise of the arbitration manager's powers is grounds for his removal from the performance of the duties of the arbitration manager during the proceedings in the bankruptcy (insolvency) case, on which the commercial court issues a ruling.
{Part Five of Article 12 as amended by Law No. 2971-IX of March 20, 2023 }
6. The arbitration manager is prohibited from disclosing information that has become known to him in connection with his activities and from using it in his own interests or the interests of third parties.
The obligation to preserve this information also applies to persons who are in an employment relationship with the arbitration manager, as well as to other persons who have access to the specified information.
7. The information specified in paragraph 5 of part two of this article may be provided by the arbitration manager to other persons only in cases and in accordance with the procedure established by law.
8. In the course of exercising his powers, the arbitration manager shall have the right to direct access to information about debtors, their property, income and funds, including confidential information, contained in state databases and registers, including electronic ones. The procedure for accessing such information from databases and registers shall be established by the central executive authorities that ensure their maintenance.
9. The arbitration manager is obliged to notify the body authorized to manage state property no later than 10 days in advance of the time, place and agenda of the creditors' meeting and the meeting of the creditors' committee of a state-owned enterprise or business partnership in whose authorized capital more than 50 percent of the shares (interests) belong to the state.
{Article 12 is supplemented by part nine in accordance with Law No. 2971-IX of 20.03.2023 }
10. The rehabilitation manager shall report quarterly to the body authorized to manage the debtor's state property on the implementation of the rehabilitation plan of a state-owned enterprise or business partnership in whose authorized capital more than 50 percent of the shares (interests) belong to the state.
The report of the rehabilitation manager of a state-owned enterprise or business partnership, in the authorized capital of which more than 50 percent of the shares (interests) belong to the state, considered by the creditors' committee, and the minutes of the meeting of the creditors' committee shall be sent by the arbitration manager to the body authorized to manage the state property of the debtor no later than five days from the date of the meeting.
{Article 12 is supplemented by part ten in accordance with Law No. 2971-IX of 20.03.2023 }
Article 12 - 1. Request of the arbitration manager↑
1. A request of an arbitration manager is a written or electronic document request of an arbitration manager appointed by a commercial court as a property manager, rehabilitation manager, liquidator, restructuring manager, or sales manager to a state authority, local government body, their officials and service personnel, enterprises, institutions, including banks, non-bank payment service providers, electronic money issuers, depository institutions, and other professional participants in capital markets, organizations regardless of the form of ownership and subordination, public associations, and individuals for the provision of information and copies of documents necessary for the arbitration manager to exercise powers in a bankruptcy (insolvency) case in respect of the debtor, as well as family members of the debtor - individuals specified in paragraph two of part five of Article 116 of this Code, in respect of whom the arbitration manager exercises the powers of a property manager. rehabilitation, liquidator, restructuring manager or implementation manager.
The receipt by the arbitration manager from banks of information containing banking secrecy shall be carried out in accordance with the procedure and to the extent determined by the Law of Ukraine "On Banks and Banking Activities".
The arbitration manager shall obtain information from non-bank payment service providers, electronic money issuers, containing the secret of the payment service provider or electronic money issuer, in accordance with the procedure and to the extent determined by the National Bank of Ukraine.
The request of the arbitration manager shall be accompanied by a copy of the court decision on his appointment in a bankruptcy (insolvency) case as a property manager, rehabilitation manager, liquidator, restructuring manager or sales manager, certified by the arbitration manager. It is prohibited to require the arbitration manager to provide other documents together with the request of the arbitration manager.
The request of the arbitration manager cannot concern the provision of consultations and clarifications of legal provisions.
2. A state authority, a local government authority, their officials and service personnel, heads of enterprises, institutions, including banks, non-bank payment service providers, electronic money issuers, depository institutions and other professional participants in capital markets, organizations, public associations, individuals to whom the arbitration manager's request has been sent, are obliged, no later than ten working days from the date of receipt of the request, to provide the arbitration manager with relevant information, including that constituting banking secrecy, the secrecy of the payment service provider or the electronic money issuer, except for secret and/or official information and copies of documents containing secret and/or official information, copies of documents.
If the request of the arbitration manager concerns the provision of a significant amount of information or requires searching for information among a significant amount of data, the term for considering the request of the arbitration manager may be extended up to 20 business days with justification of the reasons for such extension, of which the arbitration manager shall be notified in writing no later than five business days from the date of receipt of the request of the arbitration manager.
The request of the arbitration manager may be satisfied by providing relevant information and copies of documents in the form of an electronic document.
If the satisfaction of the arbitration manager's request involves the production of copies of documents exceeding ten pages, the arbitration manager shall be obliged to reimburse the actual costs of copying and printing. The amount of such costs may not exceed the maximum standards for copying and printing costs established in accordance with the legislation.
3. Refusal to provide information at the request of the arbitration manager, untimely or incomplete provision of information, provision of inaccurate information shall entail liability in accordance with the law, except for cases of refusal to provide confidential and/or official information.
{The Law is supplemented by Article 12 - 1 in accordance with Law No. 3249-IX of 13.07.2023 }
Article 13. Independence of the arbitration manager↑
1. The arbitration manager shall be independent in the exercise of his/her powers. Any unlawful influence, pressure or interference in the activities of the arbitration manager shall be prohibited.
{Part one of Article 13 as amended by Law No. 2971-IX of 03/20/2023 }
2. The independence of the arbitration manager is ensured by:
1) a special procedure for his appointment, prosecution and termination of his powers;
2) guaranteeing payment of remuneration to the arbitration manager and reimbursement of the arbitration manager's expenses in the manner and amounts specified by this Code;
3) the functioning of the bodies of the self-regulatory organization of arbitration managers.
{Article 13 is supplemented with a new part in accordance with Law No. 2971-IX of 20.03.2023 }
3. The arbitration manager is obliged to inform law enforcement agencies about any illegal influence, pressure or interference in his activities.
{Article 13 is supplemented with a new part in accordance with Law No. 2971-IX of 20.03.2023 }
4. In the event of the detention of an arbitration manager by an authorized body or notification to him of suspicion of his commission of a criminal offense, the body that carried out the detention or reported the suspicion of his commission of a criminal offense shall be obliged to immediately notify the state bankruptcy authority and the self-regulatory organization of arbitration managers.
{Part Four of Article 13 as amended by Law No. 2971-IX of March 20, 2023 }
5. The seizure of documents from the arbitration manager is permitted only by court decision in accordance with the procedure prescribed by law.
Article 14. Assistant to the Arbitration Manager↑
1. The arbitration manager may have an assistant (assistant) on the basis of an employment agreement (contract).
2. An assistant to the arbitration manager may be a citizen of Ukraine who has a higher legal or economic education of not lower than the first level and is fluent in the state language. The assistant to the arbitration manager is subject to the restrictions provided for in paragraphs 1-4 of part two of Article 11 of this Code.
3. The selection and hiring of an assistant is the exclusive right of the arbitration manager. In this case, the arbitration manager is obliged to verify the person's compliance with the requirements of this article.
The rights and obligations of an assistant to the arbitration manager are determined by this Code and the employment agreement (contract) concluded between the arbitration manager and the assistant.
4. The assistant to the arbitration manager shall assist the arbitration manager in taking measures to restore the debtor's solvency or declare him bankrupt and shall carry out the instructions of the arbitration manager to ensure the exercise of his powers.
The length of service as an assistant to an arbitration manager is equal to the period of probation provided for in Part One of Article 11 of this Code.
Article 15. Qualification Commission↑
1. A qualification commission is formed in accordance with the procedure established by the state bankruptcy authority to verify the special knowledge of persons who intend to carry out the activities of an arbitration manager.
{Part one of Article 15 as amended by Law No. 2971-IX of March 20, 2023 }
2. The qualification commission shall consist of seven members, three of whom shall be appointed by the state bankruptcy authority and four shall be appointed by the self-regulatory organization of arbitration managers. The term of office of the members of the qualification commission shall be two years.
{Paragraph one of part two of Article 15 as amended by Law No. 2971-IX of March 20, 2023 }
The composition of the qualification commission and changes to it are approved by the state bankruptcy authority.
{Part two of Article 15 is supplemented by paragraph two in accordance with Law No. 2971-IX of March 20, 2023 }
3. The qualification commission shall be headed by the head of the state bankruptcy authority or a responsible person of the said authority designated by him.
4. Qualification Commission:
develops and approves a list of questions for automated anonymous testing;
reviews documents submitted by persons intending to carry out the activities of an arbitration manager for compliance with the requirements specified in this Code;
forms a schedule for passing qualifying exams;
conducts qualification examinations and approves their results;
considers complaints regarding the results of qualifying exams;
makes a decision on granting the right to carry out the activities of an arbitration manager.
{Paragraph seven of part four of Article 15 as amended by Law No. 2971-IX of March 20, 2023 }
5. Decisions of the qualification commission are made at its meeting by a simple majority vote of the members of the commission participating in the meeting. A meeting of the qualification commission is considered authoritative if at least five members of the commission participate in it. A meeting of the qualification commission is open.
{Part Five of Article 15 as amended by Law No. 2971-IX of March 20, 2023 }
6. The decision of the qualification commission is recorded in a protocol, which is signed by all members of the commission who participated in its meeting.
{Part Six of Article 15 as amended by Law No. 2971-IX of March 20, 2023 }
Article 16. Qualification examination↑
1. A person who intends to carry out the activities of an arbitration manager, after completing training and internship, submits to the qualification commission an application for admission to take the qualification exam together with documents confirming the person's compliance with the requirements established by this Code.
{Part one of Article 16 as amended by Law No. 2971-IX of 03/20/2023 }
2. The Qualification Commission verifies the authenticity of the documents and information submitted by the person, based on the results of which it makes a decision on admission or refusal of admission to take the qualification exam.
3. The qualification exam is conducted through automated anonymous testing. The procedure for passing the qualification exam is approved by the state bankruptcy authority. The decision of the qualification commission is formalized in a protocol, which is signed by all members of the commission present at the meeting.
4. A person who has failed the qualifying exam may appeal the exam results to the qualification commission or submit an application for retaking it no earlier than six months later.
Article 17. Certificate of the right to carry out the activities of an arbitration manager↑
1. Based on the results of the qualification examination, the qualification commission, within ten days from the date of the decision on granting the right to carry out the activities of an arbitration manager, recommends that the state bankruptcy authority issue a certificate of the right to carry out the activities of an arbitration manager to the person who passed the qualification examination.
{Part one of Article 17 as amended by Law No. 2971-IX of March 20, 2023 }
2. The state bankruptcy authority shall, no later than the tenth day from the date of receipt of the recommendation of the qualification commission, issue a certificate of the right to carry out the activities of an arbitration manager and make an entry in the Unified Register of Arbitration Managers of Ukraine.
3. A certificate of the right to carry out the activities of an arbitration manager is issued without a limitation on the term of validity.
4. An arbitration manager has the right to begin carrying out activities from the date of entering information about him into the Unified Register of Arbitration Managers of Ukraine.
Article 18. Unified Register of Arbitration Managers of Ukraine↑
1. The Unified Register of Arbitration Managers of Ukraine is formed and maintained by the state body for bankruptcy.
{Part one of Article 18 as amended by Law No. 2971-IX of March 20, 2023 }
2. The Unified Register of Arbitration Managers of Ukraine contains information about:
1) surname, first name and patronymic (if any) of the arbitration manager;
2) date of the decision of the qualification commission on granting the right to carry out the activities of an arbitration manager;
3) date of issue and number of the certificate of the right to carry out the activities of an arbitration manager;
4) date of issue and number of the arbitration manager's certificate;
{Clause 4 of Part Two of Article 18 as amended by Law No. 2971-IX of March 20, 2023 }
5) date of issue and number of the certificate of completion of training in bankruptcy cases of non-banking financial institutions, its validity period;
{Clause 4 of Part Two of Article 18 as amended by Law No. 3254-IX of 07/14/2023 }
5 - 1 ) date of issue and number of the certificate for the right to perform actions related to the direct conduct of professional activities on capital markets and organized commodity markets, its validity period;
{Part two of Article 18 is supplemented by paragraph 5 - 1 in accordance with Law No. 2971-IX of March 20, 2023 }
6) location of the arbitration manager's office and means of communication with the arbitration manager (postal address, contact telephone number, e-mail address);
{Clause 6 of Part Two of Article 18 as amended by Law No. 2971-IX of March 20, 2023 }
7) date and number of the decision on the application of disciplinary sanctions to the arbitration manager and the type of disciplinary sanctions;
{Clause 7 of Part Two of Article 18 as amended by Law No. 2971-IX of March 20, 2023 }
8) information about the temporary suspension of the activities of the arbitration manager;
{Clause 8 of Part Two of Article 18 as amended by Law No. 2971-IX of March 20, 2023 }
8 - 1 ) date and number of the decision on termination of the certificate of the right to carry out the activities of an arbitration manager;
{Part two of Article 18 is supplemented by paragraph 8 - 1 in accordance with Law No. 2971-IX of 20.03.2023 }
9) surname, first name and patronymic of the assistants of the arbitration manager (if any);
10) date of issue and number of the certificate of completion of training in bankruptcy cases of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, its validity period.
{Part two of Article 18 is supplemented by paragraph 10 in accordance with Law No. 2971-IX of 20.03.2023 }
{Part three of Article 18 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
4. Information that, in accordance with this Code, is subject to entry into the Unified Register of Arbitration Managers of Ukraine shall be entered into such register in accordance with the procedure and within the time limits established by the state body for bankruptcy.
{Part Four of Article 18 as amended by Law No. 2971-IX of March 20, 2023 }
Article 19. Disciplinary offenses of arbitration managers↑
1. The basis for holding an arbitration manager to disciplinary liability is his/her commission of a disciplinary offense.
2. A disciplinary offense is:
1) the fact of engaging in activities incompatible with the activities of an arbitration manager;
2) violation of the rules of professional ethics of the arbitration manager;
3) failure to perform or improper performance of one's duties;
4) failure to comply with the charter and decisions of the self-regulatory organization of arbitration managers.
Article 20. Control over the activities of arbitration managers↑
1. Control over the activities of arbitration managers is carried out by the state bankruptcy authority and the self-regulatory organization of arbitration managers.
{Paragraph one of part one of Article 20 as amended by Law No. 2971-IX of March 20, 2023 }
The state bankruptcy authority exercises control over the activities of arbitration managers by conducting scheduled and unscheduled inspections in accordance with the procedure established by it.
2. Scheduled inspections shall be conducted for a certain period no more than once every two years at the location of the state bankruptcy authority or at the location of the debtor - a legal entity or its property, in respect of which the arbitration manager exercises the powers of the property manager, rehabilitation manager, liquidator, or at the location of the property of the debtor - an individual (with the consent of the debtor), in respect of which the arbitration manager exercises the powers of the restructuring manager, sales manager, or at the premises of the arbitration manager's office with the obligatory notification of the arbitration manager about the time and place of the inspection. The arbitration manager shall be obliged to provide the persons authorized to conduct the inspection with information, documents for review and copies thereof for inclusion in the inspection materials. A repeated inspection on issues that have already been the subject of an inspection is not allowed. Previous periods that were previously audited cannot be the subject of subsequent audits, except for audits at the request of an individual or legal entity.
{Part two of Article 20 as amended by Law No. 2971-IX of 20.03.2023 }
3. Unscheduled on-site and off-site inspections are carried out upon requests from individuals or legal entities, the rights and freedoms of which have been violated by the actions (inaction) of the bankruptcy trustee, if such requests result in the need for additional control by the state bankruptcy authority. To conduct an inspection, the state bankruptcy authority shall send the bankruptcy trustee a written request within the scope of the subject of the request. Within the period specified in the request, the bankruptcy trustee shall send the state bankruptcy authority a reasoned response and copies of the relevant documents.
{Part Three of Article 20 as amended by Law No. 2971-IX of March 20, 2023 }
4. Representatives of the state bankruptcy authority and its territorial bodies participate in inspections, with the possibility of involving representatives of the self-regulatory organization of arbitration managers in accordance with the procedure established by the state bankruptcy authority.
{Part Four of Article 20 as amended by Law No. 2971-IX of March 20, 2023 }
5. If violations of the law are discovered during the inspection of the arbitration manager's activities, the state bankruptcy authority may decide to temporarily suspend the right to carry out the activities of the arbitration manager and transfer the materials to the disciplinary commission for consideration to apply disciplinary sanctions to the violator.
{Part Five of Article 20 as amended by Law No. 3249-IX of 13.07.2023 }
6. The self-regulatory organization of arbitration managers has the right, upon the request of a participant in the bankruptcy case or on its own initiative, to inspect the activities of the arbitration manager for compliance with:
1) the charter of the self-regulatory organization of arbitration managers;
2) Code of Professional Ethics of the Arbitration Manager;
3) decisions of the self-regulatory organization of arbitration managers related to the activities of arbitration managers.
7. Verification by the self-regulatory organization of arbitration managers of the activities of an arbitration manager shall be carried out in accordance with the procedure provided for in part three of this article.
8. The self-regulatory organization of arbitration managers is obliged, within 10 working days from the date of receipt of the arbitration manager's explanations, from the time when such explanations should have been received, in case of their failure to be provided, to consider the provided materials for the presence of signs of a disciplinary offense and to decide on the issue of submitting a submission to the disciplinary commission on bringing the arbitration manager to disciplinary liability.
{Part nine of Article 20 is excluded on the basis of the Law No. 3985-IX dated 19.09.2024 }
Article 21. Liability of arbitration managers↑
1. Arbitration managers shall bear civil, administrative, disciplinary and criminal liability for their actions and inaction in the manner and to the extent established by law.
2. Arbitration managers shall bear disciplinary responsibility in accordance with the procedure established by this Code.
3. The state bankruptcy authority, upon the recommendation of the disciplinary commission, shall apply disciplinary sanctions to arbitration managers.
4. The decision to impose disciplinary sanctions shall be made by the disciplinary commission within two months from the date of detection of the disciplinary offense, but no later than one year from the date of its commission.
{Part Four of Article 21 as amended by Law No. 2971-IX of March 20, 2023 }
5. An entry shall be made in the Unified Register of Arbitration Managers of Ukraine regarding the application of disciplinary sanctions to an arbitration manager.
Article 22. Disciplinary Commission↑
1. A disciplinary commission is formed in accordance with the procedure established by the state bankruptcy authority to consider issues regarding bringing arbitration managers to disciplinary liability for committing a disciplinary offense.
2. The disciplinary commission shall consist of seven persons, three of whom shall be appointed by the state bankruptcy authority and four shall be appointed by the self-regulatory organization of arbitration managers. The term of office of the members of the disciplinary commission shall be two years.
{Paragraph one of part two of Article 22 as amended by Law No. 2971-IX of March 20, 2023 }
The composition of the disciplinary commission and changes to it are approved by the state bankruptcy authority.
{Part two of Article 22 is supplemented by paragraph two in accordance with Law No. 2971-IX of March 20, 2023 }
3. The disciplinary commission shall be headed by the head of the state bankruptcy authority or a responsible person of the said authority designated by him.
4. Disciplinary Commission:
considers the submission of the state body for bankruptcy, the self-regulatory organization of arbitration managers on bringing the arbitration manager to disciplinary liability;
in the event of receiving applications from individuals and legal entities regarding the activities of arbitration managers, sends the relevant applications for verification to the state body for bankruptcy or a self-regulatory organization of arbitration managers;
makes a decision on the application of disciplinary action to the arbitration manager based on a submission from the state bankruptcy authority or a self-regulatory organization of arbitration managers to hold the arbitration manager accountable.
{Paragraph four of part four of Article 22 as amended by Law No. 2971-IX of March 20, 2023 }
5. Decisions of the disciplinary commission shall be made at its meeting by a simple majority vote of the members of the commission participating in the meeting. A meeting of the disciplinary commission shall be considered valid if at least five members of the commission participate in it.
{Part five of Article 22 as amended by Law No. 2971-IX of 03/20/2023 }
6. The decision of the disciplinary commission is recorded in a protocol, which is signed by all members of the commission who participated in its meeting.
{Part Six of Article 22 as amended by Law No. 2971-IX of March 20, 2023 }
Article 23. Disciplinary sanctions↑
1. Disciplinary sanctions applied to the arbitration manager:
1) warning;
{Paragraph 2 of Part One of Article 23 is excluded on the basis of the Law No. 3985-IX dated 19.09.2024 }
3) temporary suspension of the right to carry out the activities of an arbitration manager;
4) deprivation of the right to carry out the activities of an arbitration manager.
2. When determining the type of disciplinary sanction, the degree of guilt of the arbitration manager, the severity of the disciplinary offense committed by him, as well as whether disciplinary sanctions have previously been applied to the arbitration manager, shall be taken into account.
Article 24. Liability insurance of the arbitration manager↑
1. The arbitration manager has the right to conclude with the insurer a liability insurance contract for damage caused as a result of unintentional actions or errors during the exercise of the powers of the arbitration manager, under the insurance class 13 defined by Article 4 of the Law of Ukraine "On Insurance".
The procedure and conditions for implementing such insurance may be determined by the central executive body that ensures the formation and implementation of state legal policy and state policy on bankruptcy, in agreement with the National Bank of Ukraine.
{Article 24 as amended by Law No. 2971-IX of March 20, 2023 ; as amended by Law No. 1909-IX of November 18, 2021 }
Article 25. Compensation for damage caused by the fault of the arbitration manager↑
1. Damage caused to a person as a result of the unlawful actions of an arbitration manager shall be compensated in accordance with the law.
2. Damage caused to a person as a result of unintentional actions or errors of the arbitration manager shall be compensated at the expense of the arbitration manager or insurance payments in the event that he concludes an insurance contract.
{Part two of Article 25 as amended by Law No. 1909-IX of 11/18/2021 }
3. Damage caused to a person as a result of intentional actions or inaction of the arbitration manager shall be compensated by the arbitration manager.
Article 26. Termination of the activities of the arbitration manager↑
1. The grounds for terminating the activities of an arbitration manager are:
1) a written statement from the arbitration manager;
{Paragraph 2 of Part One of Article 26 is excluded on the basis of the Law No. 3985-IX dated 19.09.2024 }
3) entry into force of a conviction against an arbitration manager or a court decision to hold him administratively liable for committing an administrative offense, which entails a penalty in the form of deprivation of the right to hold certain positions or engage in certain activities related to the performance of state or local government functions, or activities equivalent to such activities;
{Clause 3 of Part One of Article 26 as amended by Law No. 2971-IX of March 20, 2023 }
4) non-compliance of the arbitration manager with the requirements established by Article 11 of this Code;
5) application of disciplinary action in the form of deprivation of the right to carry out the activities of an arbitration manager;
6) submission of false information required to obtain a certificate of the right to carry out the activities of an arbitration manager;
7) death of the arbitration manager, recognition of him as missing or declaration of death.
{Clause 7 of Part One of Article 26 as amended by Law No. 2971-IX of March 20, 2023 }
2. The termination of the activities of an arbitration manager shall be carried out by terminating the validity of his certificate of the right to carry out the activities of an arbitration manager.
{Part two of Article 26 as amended by Law No. 2971-IX of 03/20/2023 }
Article 27. Procedure for terminating the activities of an arbitration manager↑
1. If there are grounds specified in Article 26 of this Code, the state bankruptcy authority shall make a decision to terminate the activities of the arbitration manager and enter an entry in the Unified Register of Arbitration Managers of Ukraine on the termination of the certificate of the right to carry out the activities of the arbitration manager.
{Part one of Article 27 as amended by Law No. 2971-IX of 20.03.2023 }
2. The state bankruptcy authority shall be obliged to notify the arbitration manager of the termination of his activities no later than three days from the date of making the decision.
3. The activities of an arbitration manager shall be terminated from the date of entry in the Unified Register of Arbitration Managers of Ukraine of an entry on the termination of the validity of his certificate.
{Part Three of Article 27 as amended by Law No. 2971-IX of March 20, 2023 }
4. The decision of the state bankruptcy authority to terminate the certificate of the right to carry out the activities of an arbitration manager may be appealed by the arbitration manager to the court. Appealing the decision does not suspend its effect.
{Part Four of Article 27 as amended by Law No. 2971-IX of March 20, 2023 }
Article 28. Appointment and removal of the arbitration manager↑
1. The candidacy of an arbitration manager to exercise the powers of a property administrator or a restructuring manager is determined by the court through automated selection using the Unified Judicial Information and Telecommunications System from among the arbitration managers entered in the Unified Register of Arbitration Managers of Ukraine, based on the principle of random selection.
An arbitration manager to exercise the powers of the property manager or restructuring manager, in the event of the removal of the property manager or restructuring manager from exercising his powers, a rehabilitation manager, a sales manager and a liquidator are appointed by the commercial court at the request of the creditors' committee (in a case of bankruptcy of a legal entity) or a creditors' meeting (in a case of insolvency of an individual).
{Paragraph two of part one of Article 28 as amended by the Law No. 3249-IX dated 13.07.2023 }
2. In the ruling on accepting the application to initiate proceedings in the case, the commercial court invites three arbitration managers determined through automated selection to submit an application to participate in this case.
If the application for participation in the case was received from only one arbitration manager, the commercial court appoints such person as the administrator of the property/restructuring manager.
If an application for participation in the case was received from two or three arbitration managers determined through automated selection, the commercial court appoints the person who was first determined through automated selection as the property manager/restructuring manager.
If none of the arbitration managers determined through automated selection has filed an application for participation in the case with the commercial court, the commercial court shall appoint an arbitration manager as the property manager/restructuring manager on its own initiative.
{Paragraph four of part two of Article 28 as amended by Law No. 2971-IX of March 20, 2023 }
3. Arbitration managers cannot be appointed as property managers, restructuring managers, rehabilitation managers, liquidators, or sales managers, and appointed arbitration managers are subject to removal:
{Paragraph one of part three of Article 28 as amended by Law No. 3985-IX of September 19, 2024 }
1) who are interested parties in this case;
2) who previously managed this debtor - a legal entity, except for cases when at least three years have passed since the date of removal from management of the specified debtor;
3) who have been denied access to state secrets, if such access is necessary for the performance of duties specified in this Code;
4) who have a real or potential conflict of interest;
{Clause 4 of Part Three of Article 28 as amended by Law No. 2971-IX of March 20, 2023 }
{Clause 5 of Part Three of Article 28 was excluded pursuant to Law No. 2971-IX of March 20, 2023 }
6) who are close relatives of the debtor - an individual;
7) for whom insolvency proceedings have been opened or less than three years have passed since the date of closure of insolvency proceedings;
{Part three of Article 28 is supplemented by paragraph 7 in accordance with Law No. 3985-IX of September 19, 2024 }
8) if there are grounds specified in Article 26 of this Code.
{Part three of Article 28 is supplemented by paragraph 8 in accordance with Law No. 3985-IX of September 19, 2024 }
Before being appointed as an arbitration manager, a person must submit an application to the commercial court stating that he or she is not one of the persons specified in this part.
4. An arbitration manager may be removed by a commercial court from exercising the powers of a property manager, restructuring manager, rehabilitation manager, liquidator, or sales manager upon his application.
The suspension of the arbitration manager from the exercise of his powers is carried out by the commercial court at the request of a participant in the proceedings or on its own initiative in the event of:
1) failure to perform or improper performance of the duties assigned to the arbitration manager;
2) abuse of the rights of the arbitration manager;
3) submitting false information to the court;
4) refusal to grant the arbitration manager access to state secrets or cancellation of previously granted access, if such access is necessary for the performance of duties specified in this Code;
{Paragraph six of part four of Article 28 as amended by Law No. 2971-IX of March 20, 2023 }
5) termination of the activities of the arbitration manager;
5 - 1 ) temporary suspension of the right to carry out the activities of an arbitration manager for a period of more than 30 days;
{Part four of Article 28 is supplemented with a new paragraph in accordance with Law No. 3985-IX of September 19, 2024 }
6) the presence of a real or potential conflict of interest.
{Paragraph of Part Four of Article 28 as amended by Law No. 2971-IX of March 20, 2023 }
If the application for the removal of the arbitration manager is not filed by a participant in the proceedings, such application shall remain unconsidered by the court.
{Part four of Article 28 is supplemented with a new paragraph in accordance with Law No. 2971-IX of March 20, 2023 }
The creditors' committee has the right to apply to the commercial court at any time with a motion to remove the arbitration manager from the exercise of his powers, regardless of the existence of such grounds.
{Paragraph of Part Four of Article 28 as amended by Law No. 2971-IX of March 20, 2023 }
The petition for the removal of an arbitration manager from the exercise of powers must contain the candidacy of the arbitration manager for his appointment to exercise powers in a bankruptcy (insolvency) case.
{Part four of Article 28 is supplemented with a new paragraph in accordance with Law No. 3985-IX of September 19, 2024 }
If there are grounds for removing the arbitration manager from the exercise of his powers or at the request of the creditors' committee, the commercial court shall, within 14 days, issue a ruling on removing the arbitration manager from the exercise of his powers and appointing another arbitration manager.
{Paragraph thirteen of part four of Article 28 as amended by Law No. 3985-IX of September 19, 2024 }
{Part five of Article 28 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
{Part six of Article 28 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
Article 29. Temporary suspension of the right to carry out the activities of an arbitration manager↑
1. The right to carry out the activities of an arbitration manager shall be temporarily suspended for the duration of the following circumstances:
if the arbitration manager is elected or appointed to a position that is incompatible with the performance of the activities of the arbitration manager - for the entire period of holding the relevant position;
if the arbitration manager considers it necessary to suspend the right to carry out the activities of an arbitration manager at his own request for a period not exceeding 30 days in total during a calendar year, or for a longer period if there are good reasons (pregnancy, childcare, temporary incapacity (illness), employment at the main place of work, etc.);
{Paragraph three of part one of Article 29 as amended by Law No. 2971-IX of 20.03.2023 }
in the event of the application of preventive measures to the arbitration manager as a suspect or accused in criminal proceedings in the form of house arrest with a ban on leaving the residence around the clock or during working hours or detention - for the duration of the preventive measure, in the event of the application of a measure to secure criminal proceedings in the form of a temporary restriction on the use of a special right - for the duration of such a measure;
in the event of the application of disciplinary sanctions to the arbitration manager in the form of a temporary suspension of the right to carry out the activities of the arbitration manager - for the period specified in the decision of the disciplinary commission on the application of disciplinary sanctions;
in the event of violations of the law being discovered during the inspection of the activities of the arbitration manager - until the disciplinary commission makes a decision, but for a period not exceeding 30 days.
{Part one of Article 29 is supplemented with the sixth paragraph in accordance with Law No. 3249-IX of 13.07.2023 }
2. In the event of the occurrence of the circumstances provided for in paragraph two of part one of this article, the arbitration manager shall be obliged to notify the state bankruptcy authority in writing no later than the next business day after the occurrence of the specified circumstances.
In the event of the occurrence of circumstances provided for in paragraph three of part one of this article, and if the right to carry out the activities of an arbitration manager is suspended for a period of more than three days, the arbitration manager shall be obliged to notify the state bankruptcy authority in writing no less than one working day before the day of suspension of his activities, indicating the reasons and term of temporary suspension of his activities.
{Part two of Article 29 as amended by Laws No. 2971-IX of 03/20/2023 , No. 3985-IX of 09/19/2024 }
3. The arbitration manager is obliged to suspend his/her activities from the moment of entering information on the temporary suspension of the right to carry out the activities of the arbitration manager into the Unified Register of Arbitration Managers of Ukraine and to notify the commercial court in whose proceedings the bankruptcy (insolvency) case is pending.
{Part Three of Article 29 as amended by Law No. 2971-IX of March 20, 2023 }
4. In the event of a temporary suspension of the right to carry out the activities of an arbitration manager for a period of more than 30 days, the commercial court in whose proceedings the bankruptcy (insolvency) case is pending shall appoint another arbitration manager in accordance with the procedure established by this Code.
{Paragraph one of part four of Article 29 as amended by Law No. 2971-IX of March 20, 2023 }
Until another arbitration manager is appointed in a bankruptcy (insolvency) case, the arbitration manager whose right to carry out activities has been temporarily suspended shall not have the right to exercise any powers of the property manager, rehabilitation manager, liquidator, restructuring manager, or sales manager defined by law, except for taking measures to ensure the protection and preservation of the debtor's (bankrupt) property, except for cases where taking such measures is impossible for good reasons, and transferring documents to another arbitration manager.
{Paragraph two of part four of Article 29 as amended by Law No. 2971-IX of March 20, 2023 }
5. The procedure for temporary suspension of the right to carry out the activities of an arbitration manager shall be established by the state bankruptcy authority.
Article 30. Remuneration and reimbursement of expenses of the arbitration manager↑
1. The arbitration manager shall exercise his powers for a monetary reward.
The arbitration manager's remuneration consists of basic and additional remuneration.
2. The amount of the main monetary remuneration of the arbitration manager for the performance of his powers as a property manager or liquidator is determined as the average monthly salary of the debtor's manager for the last 12 months of his work before the initiation of proceedings in the case, but not less than three times the minimum wage for each month of the arbitration manager's performance of his powers.
The amount of the main monetary remuneration of the arbitration manager for the performance of his powers as a rehabilitation manager is established by the creditors' meeting during the approval of the rehabilitation plan and cannot be less than four times the minimum wage for each month of the arbitration manager's performance of his powers.
The amount of the main monetary remuneration of the arbitration manager for the performance of his powers as a restructuring manager is five times the subsistence minimum for able-bodied persons for each month of the arbitration manager's performance of his powers.
The amount of the main monetary remuneration of the arbitration manager for the performance of his powers as a sales manager is three times the subsistence minimum for able-bodied persons for each month of the arbitration manager's performance of his powers.
The right to claim the main monetary remuneration arises for the arbitration manager on the last day of each calendar month of the performance of his powers.
Payment of the main remuneration of the arbitration manager for the performance of his powers as a property manager, liquidator, rehabilitation manager, restructuring manager, and sales manager is made from funds advanced by the applicant (creditor or debtor) to the deposit account of the commercial court considering the case, prior to the filing of an application to initiate proceedings in the case.
{Paragraph six of part two of Article 30 as amended by Law No. 2971-IX of March 20, 2023 }
If the procedure continues after the funds advanced by the applicant have been exhausted, the main remuneration of the arbitration manager shall be paid from the funds received by the debtor - a legal entity as a result of economic activity, or from the funds received from the sale of the debtor's property that is not pledged, or from the funds of a fund created by creditors to pay the monetary remuneration and reimburse the expenses of the arbitration manager (if it is created).
{Paragraph seven of part two of Article 30 as amended by Law No. 3249-IX of 13.07.2023 }
3. The additional monetary remuneration of the arbitration manager is determined in the amount of:
5 percent of the value of the property recovered in favor of the debtor, which on the day of the opening of proceedings in the case was in the possession of third parties;
3 percent of the amount of settled creditors' claims.
Additional remuneration shall not be paid to the arbitration manager if the claims of a secured creditor are satisfied in connection with the sale to such creditor of the property securing his claims.
The right to claim additional monetary compensation arises for the arbitration manager from the date of actual receipt by the debtor of the property collected in his favor, which on the date of the opening of proceedings in the case was in the possession of third parties, or from the date of actual receipt of funds to the debtor's account, which are used to repay creditors' claims.
4. The expenses of the arbitration manager related to the exercise of his powers in the case shall be reimbursed in accordance with the procedure provided for by this Code, except for the expenses for his professional liability insurance, as well as the expenses related to the exercise of such powers insofar as the said expenses exceed the prices (tariffs) regulated by the state for the relevant goods, works, services or market prices on the day of the relevant expenses or the order (purchase) of the goods, works, services.
{Part Four of Article 30 as amended by Law No. 2971-IX of March 20, 2023 }
5. Creditors may establish a fund for the payment of monetary compensation and reimbursement of the expenses of the arbitration manager. The procedure for the formation of the fund and the procedure for the use of its funds shall be determined by the decision of the creditors' meeting (in the case of insolvency of an individual) or the creditors' committee (in the case of bankruptcy of a legal entity) and shall be approved by a decision of the commercial court.
{Paragraph one of part five of Article 30 as amended by Laws No. 2971-IX of March 20, 2023 , No. 3249-IX of July 13, 2023 }
The commercial court, upon the application of the creditor, has the right to reduce the amount of the arbitration manager's remuneration if the average monthly salary of the debtor's manager is excessively high compared to the minimum wage.
6. The arbitration manager shall report at least once every two months on the accrual and payment of the arbitration manager's remuneration, the incurrence and reimbursement of his expenses at meetings of creditors' meetings (in a case of insolvency of an individual) or the creditors' committee (in a case of bankruptcy of a legal entity), and in respect of expenses relating to pledged property - to the secured creditor.
{Paragraph one of part six of Article 30 as amended by Law No. 2971-IX of March 20, 2023 }
The arbitration manager's report on the accrual and payment of monetary compensation, the implementation and reimbursement of expenses must be approved by the creditors' meeting (in a case of insolvency of an individual) or the creditors' committee (in a case of bankruptcy of a legal entity), and in terms of expenses related to pledged property - by the secured creditor.
{Paragraph two of part six of Article 30 as amended by Law No. 2971-IX of March 20, 2023 }
A report on the accrual and payment of monetary compensation, the implementation and reimbursement of expenses based on the results of the procedures for the disposal of property, rehabilitation, liquidation, and repayment of the debtor's debts is submitted by the arbitration manager to the commercial court five days before the end of the relevant procedure, is considered by the court, and is approved by a decision that may be appealed in accordance with the established procedure.
{Paragraph three of part six of Article 30 as amended by Law No. 2971-IX of March 20, 2023 }
Article 31. Rules for maintaining records and archives of the arbitration manager↑
1. The rules for maintaining the records and archives of the arbitration manager shall be approved by the state bankruptcy body in agreement with the central executive body implementing state policy in the field of archival affairs and records.
2. Arbitration managers shall maintain and submit statistical reports, operational reports and information in accordance with the procedure established by the state bankruptcy authority.
3. In the event of termination of the activities of the arbitration manager, his archive shall be transferred to the relevant state archive in accordance with the procedure established by law.
{Part Three of Article 31 as amended by Law No. 2971-IX of March 20, 2023 }
Section II. SELF-REGULATORY ORGANIZATION OF ARBITRATION MANAGERS↑
Article 32. Self-regulatory organization of arbitration managers↑
1. Self-government of arbitration managers is based on the principles of election, transparency, accountability and obligation for arbitration managers to execute decisions of the bodies of the self-regulatory organization of arbitration managers.
Only arbitration managers whose information is included in the Unified Register of Arbitration Managers of Ukraine and whose activities have not been terminated in accordance with the procedure established by law may participate in the work of self-government bodies and be elected to their composition.
{Paragraph two of part one of Article 32 as amended by Law No. 2971-IX of 20.03.2023 }
2. The self-regulatory organization of arbitration managers is a non-profit professional organization that unites all arbitration managers and is formed to ensure the implementation of the tasks of self-government of arbitration managers.
The self-regulatory organization of arbitration managers is a legal entity and operates through the organizational forms of self-government of arbitration managers provided for by this Code.
3. The self-regulatory organization of arbitration managers is formed by the congress of arbitration managers of Ukraine and cannot be reorganized. The self-regulatory organization of arbitration managers may be liquidated only on the basis of the law.
The charter of the self-regulatory organization of arbitration managers is approved by the Congress of Arbitration Managers of Ukraine and is its founding document.
4. From the moment of state registration of a self-regulatory organization of arbitration managers, all arbitration managers whose information is entered in the Unified Register of Arbitration Managers of Ukraine and whose activities have not been terminated in accordance with the procedure established by law shall become its members.
{Paragraph one of part four of Article 32 as amended by Law No. 2971-IX of March 20, 2023 }
An arbitration manager becomes a member of a self-regulatory organization of arbitration managers from the date of entry of information about him into the Unified Register of Arbitration Managers of Ukraine.
The arbitration manager is obliged to pay membership fees to the self-regulatory organization of arbitration managers.
The establishment by self-government bodies of arbitration managers of other mandatory contributions not provided for by this Code is prohibited.
5. The bodies of the self-regulatory organization of arbitration managers are:
1) congress of arbitration managers of the region;
{Clause 1 of Part Five of Article 32 as amended by Law No. 2971-IX of March 20, 2023 }
2) the board of arbitration managers of the region;
{Clause 2 of Part Five of Article 32 as amended by Law No. 2971-IX of March 20, 2023 }
3) Chairman of the Board of Arbitration Managers of the region;
4) Council of Arbitration Managers of Ukraine;
5) Chairman of the Council of Arbitration Managers of Ukraine;
6) Congress of Arbitration Managers of Ukraine;
7) audit committee.
6. The self-regulatory organization of arbitration managers may establish other bodies necessary to exercise the powers specified in this Code.
7. The highest self-government body of arbitration managers is the Congress of Arbitration Managers of Ukraine.
The Congress of Arbitration Managers of Ukraine is convened by the Council of Arbitration Managers of Ukraine at least once every two years.
The Congress of Arbitration Managers of Ukraine may also be convened at the request of the state bankruptcy authority or at least 10 percent of the total number of members of the self-regulatory organization of arbitration managers, or at least one third of the regional arbitration managers' councils.
The Council of Arbitration Managers of Ukraine is obliged to convene and organize a congress of arbitration managers of Ukraine within 30 days from the date of receipt of the request to convene a congress of arbitration managers of Ukraine.
The Council of Arbitration Managers of Ukraine shall notify all members of the day, time and place of the start of the Congress of Arbitration Managers of Ukraine and of the issues to be discussed no later than 14 days before the start of the Congress, and shall also post relevant information on the website of the self-regulatory organization of arbitration managers.
8. Congress of Arbitration Managers of Ukraine:
1) forms the Council of Arbitration Managers of Ukraine, elects the Chairman of the Council of Arbitration Managers of Ukraine and his deputies and early recalls them from their positions;
2) approves the charter of the self-regulatory organization of arbitration managers and makes amendments to it;
3) approves the Code of Professional Ethics of the Arbitration Manager;
4) forms an audit commission;
{Clause 5 of Part Eight of Article 32 was excluded pursuant to Law No. 2971-IX of March 20, 2023 }
6) approves the Regulations on the Council of Arbitration Managers of Ukraine, the Regulations on the Audit Commission;
7) considers and approves the reports of the Council of Arbitration Managers of Ukraine, the conclusions of the audit commission and reports of other bodies established by the self-regulatory organization of arbitration managers;
8) approves the budgets of the self-regulatory organization of arbitration managers, its bodies, as well as reports on their implementation;
9) exercises other powers in accordance with this Code and the charter of the self-regulatory organization of arbitration managers.
9. The powers, composition and procedure for forming other bodies and the regulations on such bodies shall be determined by the charter of the self-regulatory organization of arbitration managers.
Article 33. Functions and powers of the self-regulatory organization of arbitration managers↑
1. Self-regulatory organization of arbitration managers:
1) carries out, in accordance with the procedure provided for by this Code, control over the activities of arbitration managers regarding compliance with this Code, the Code of Professional Ethics of Arbitration Managers and other regulatory legal acts;
2) participates in the development of regulatory legal acts and measures on the restoration of the debtor's solvency or declaring him bankrupt;
3) represents arbitration managers in relations with state authorities, local self-government bodies, their officials and employees, enterprises, institutions, organizations regardless of their form of ownership, public associations and international organizations;
4) protects the professional rights of arbitration managers;
5) ensures a high professional level and development of the profession of arbitration managers;
6) ensures the prestige of the profession of arbitration managers;
7) organizes verification of published information that degrades the honor and dignity, business reputation of arbitration managers, and in case of its unreliability, takes measures to refute it;
8) provides consultations and prepares methodological recommendations on the professional ethics of arbitration managers and the application of progressive practices;
9) informs the public about practices and problematic issues in insolvency restoration procedures;
10) exercises other powers in accordance with this Code.
BOOK THREE. PREVENTIVE RESTRUCTURING
Section I. GENERAL PROVISIONS↑
Article 33 - 1. Preventive restructuring↑
1. The preventive restructuring procedure may be initiated by a debtor - a legal entity or an individual entrepreneur, except for legal entities, bankruptcy proceedings in which are not permitted under this Code, as well as legal entities that provide financial services.
2. Creditors under the debtor's obligations, members of the debtor's management bodies (executive body, supervisory board, etc.) or a representative of the debtor's employees, if there is information about the debtor's insolvency or the threat thereof, have the right to initiate the issue of opening a preventive restructuring procedure with the debtor.
In such a case, the debtor is obliged to consider such a proposal and make a reasoned decision on initiating or refusing to initiate the preventive restructuring procedure, of which the debtor is obliged to notify the initiator within 30 days from the date of receipt of the relevant request from the creditor, a member of the debtor's management body or a representative of the debtor's employees.
The debtor's notification must indicate the presence or absence of signs of insolvency or its threat, as well as, if the indicated signs are present, the measures taken or to be taken by the debtor to prevent or avert insolvency.
3. The decision to initiate the procedure for preventive restructuring of a debtor - a legal entity is made by the highest management body, the owner of the property (the body authorized to manage the property) of the debtor.
4. The claims of employees related to employment relations with the debtor, regarding compensation for damage caused by injury, other damage to health or death of an individual, payment of alimony, payment of a single contribution to mandatory state social insurance and other mandatory payments for mandatory state social insurance, claims not related to the entrepreneurial activities of an individual entrepreneur, cannot be subject to preventive restructuring.
5. The subject of preventive restructuring may be monetary claims against the debtor for obligations that have become due, as well as monetary claims against the debtor for obligations that will become due during the preventive restructuring procedure and as a result of non-fulfillment of which the debtor may become insolvent.
6. In the event that a debtor initiates a preventive restructuring procedure in respect of a debtor in respect of whom the circumstances provided for in part six of Article 34 of this Code exist, such debtor shall be required to meet a higher standard of proof regarding the prospects for implementing the preventive restructuring plan.
7. The parties to preventive restructuring are: the debtor, involved creditors, and in the case of state and municipal enterprises - the owner of the property (the body authorized to manage the property) of the debtor, as well as the debtor's employees represented by a representative of the debtor's employees, if the preventive restructuring plan establishes, changes or terminates their rights and interests.
Section II. PREVENTIVE RESTRUCTURING ADMINISTRATOR↑
Article 33 - 2. Appointment and removal of the preventive restructuring administrator↑
1. The preventive restructuring administrator is appointed by the commercial court.
2. The administrator's participation in the preventive restructuring procedure is mandatory in the following cases:
1) if, as of the date of the debtor's application to the commercial court, the debtor has not developed a preventive restructuring plan, but has added a preventive restructuring concept to the application for the initiation of the preventive restructuring procedure;
2) application by the commercial court of measures to protect the debtor;
3) submission by the debtor of an application for approval of the preventive restructuring plan and approval by the court of the preventive restructuring plan in accordance with the procedure specified in Article 33 - 23 of this Code.
3. The candidacy of the preventive restructuring administrator shall be submitted:
1) in the case provided for in paragraph 1 of part two of this article, by the debtor together with an application for the initiation of preventive restructuring procedures;
2) in the case provided for in paragraph 2 of part two of this article, by the debtor together with an application for taking measures to protect the debtor, provided that at the time of filing such an application the court has not appointed an administrator;
3) in the case provided for in paragraph 3 of part two of this article, as well as if the preventive restructuring plan provides for monitoring the implementation of the preventive restructuring plan - by the creditors' meeting until the date of the final meeting of the commercial court, at which the application for approval of the preventive restructuring plan will be considered.
4. An arbitration manager may not be appointed as a preventive restructuring administrator:
1) who has been in an employment relationship with the debtor, an interested party in relation to the debtor or a creditor for the past three years;
2) who, during the last three years, has been in a contractual relationship or has provided services as a subject of independent professional activity to the debtor, an interested person in relation to the debtor or a creditor;
3) who is an interested party in relation to the debtor or creditors;
4) who is in a potential or actual conflict of interest with respect to the debtor or creditors;
5) who has been denied access to state secrets, if such access is necessary to exercise the powers specified in this Code;
6) in respect of whom insolvency proceedings have been opened or less than three years have passed since the date of closure of insolvency proceedings;
7) who was deprived of the right to carry out the activities of an arbitration manager and less than three years have passed since the date of the decision to deprive him of the right to carry out the activities.
5. If the participation of the administrator in the preventive restructuring procedure is mandatory, payment for the services of the preventive restructuring administrator shall be made at the expense of the debtor.
6. If the participation of the administrator in the preventive restructuring procedure is not mandatory, the commercial court may appoint an administrator upon the application of the debtor or the creditors' meeting. The payment for the services of the preventive restructuring administrator shall be borne by the party that applied to the court with an application for his appointment.
7. A copy of the agreement with the arbitration manager on the exercise of powers, which must contain information about the cost of services agreed with the debtor or the creditors' meeting, shall be attached to the application for the appointment of a preventive restructuring administrator. On behalf of the creditors' meeting, the agreement with the arbitration manager shall be signed by the chairman of the creditors' meeting or an involved creditor authorized to do so by the decision of the creditors' meeting.
The creditors' meeting, when deciding to apply to the court for the appointment of a preventive restructuring administrator, must decide whether the cost of the administrator's services is paid by all or individual creditors, and the procedure for making the payment. Payment may be made by creditors in a proportion determined by them directly to the administrator's account or by transferring funds to the deposit account of the commercial court in whose proceedings the preventive restructuring procedure is being conducted.
8. The cost of the services of the preventive restructuring administrator is determined in the amount of:
1) three minimum wages for each month of the administrator's performance of preventive restructuring powers in relation to a debtor who is a micro-enterprise entity or a small business entity;
2) ten times the minimum wage for each month of the administrator's performance of powers in relation to a debtor - a medium-sized business entity;
3) fifteen times the minimum wage for each month of the administrator's performance of powers in relation to the debtor - a large business entity.
The cost of the services of the preventive restructuring administrator may be reduced or increased taking into account the projected duration of the preventive restructuring procedure, the projected labor costs of the administrator to perform his powers, the scope of powers assigned to the administrator according to the preventive restructuring plan, the complexity of the case, the financial condition of the debtor, the impact of the cost of the administrator's services on the possibility of implementing the preventive restructuring plan (concept), the debtor's status as a micro-enterprise entity and a small business entity.
In the event of a change in the cost of the services of the preventive restructuring administrator in accordance with paragraph one of this part, the party in the application for the appointment of the administrator is obliged to justify the grounds for increasing or decreasing the level of remuneration and indicate what circumstances were taken into account when determining the amount of remuneration.
9. The Commercial Court, in its ruling on the appointment of the preventive restructuring administrator, shall establish the amount of the administrator's remuneration.
The commercial court, upon application of the debtor, involved creditors or on its own initiative, based on the circumstances provided for in Part Eight of this Article, has the right, when deciding on the appointment of a preventive restructuring administrator, to reduce the amount of the administrator's remuneration, as specified in the resolution on the appointment of the administrator.
10. The preventive restructuring administrator may be suspended by the commercial court from exercising his powers upon his application.
The suspension of the preventive restructuring administrator from exercising his powers is carried out by the commercial court also in the event of:
1) failure to perform or improper performance of the duties assigned to the administrator of preventive restructuring, or submission of inaccurate information to the court by the administrator - upon application by the debtor or the meeting of creditors;
2) termination or suspension of the activities of the arbitration manager, who exercises the powers of the preventive restructuring administrator, - upon application by a party or by the court on its own initiative;
3) establishing the circumstances provided for in Part Four of this Article - upon application by a party or by the court on its own initiative.
The Commercial Court shall consider an application to remove the preventive restructuring administrator from the exercise of his powers within 10 days from the date of its receipt by the court.
11. Failure by the creditors' meeting to submit a candidate for the appointment of an administrator if the appointment of an administrator under this Code is mandatory upon their submission shall not be a ground for refusal to approve the preventive restructuring plan. In such a case, further proceedings in the preventive restructuring procedure shall be carried out without the participation of the administrator.
12. The powers of the preventive restructuring administrator shall be terminated in the event of:
1) the decision of the final session of the commercial court - regarding the preventive restructuring administrator appointed to hold the final session;
2) closure of the preventive restructuring procedure - in all other cases.
Article 33 - 3. Powers of the preventive restructuring administrator↑
1. The administrator of preventive restructuring at the stage before the final meeting of the commercial court:
1) provides recommendations on preventing the debtor from becoming insolvent;
2) provides recommendations and participates in the development of a preventive restructuring plan;
3) participates in and facilitates negotiations on the development and coordination with creditors of a preventive restructuring plan;
4) provides an opinion on the compliance of the preventive restructuring plan with the requirements provided for by this Code, the prospects for its implementation and compliance with the criterion of the best interests of creditors;
5) monitors compliance by the debtor and creditors with debtor protection measures, takes measures in case of their violation, including notifying the commercial court of their loss of relevance;
6) provides an opinion on the amount of claims of involved creditors, regarding which the debtor or creditors have objections;
7) supervises the debtor's business activities, in connection with which he has access to all information about the debtor's activities, including accounting data, information about the movement of funds in the debtor's accounts, etc.;
8) in case of identification of grounds for closing the preventive restructuring procedure, in particular, provision of unreliable information by the debtor to the commercial court, futility of preventive restructuring - immediately inform the commercial court;
9) applies to the court in case of detection of violation of the requirements of this Code by the debtor, involved creditors or other persons;
10) considers complaints and applications of involved creditors;
11) submits to the commercial court, in the proceedings of which the preventive restructuring procedure is being conducted, applications, motions, and other procedural statements on the merits of the case;
12) provide, within five days upon request of the involved creditors or the court, complete and reliable information on the progress of the preventive restructuring procedure;
13) in case of detection of signs of a criminal offense in the actions of the debtor's officials, inform law enforcement agencies about this;
14) provides, in accordance with the procedure and within the time limits determined by the state bankruptcy authority, information on the progress of the preventive restructuring procedure;
15) requests documents or their copies from legal entities, state authorities, local self-government bodies and from individuals with their consent.
2. The preventive restructuring administrator, who is appointed to monitor the implementation of the preventive restructuring plan, unless another scope of powers is provided for in the preventive restructuring plan:
1) exercises the powers provided for in paragraphs 7-15 of part one of this article;
2) provides written consent to conclude transactions to attract new financing.
The preventive restructuring plan (except for the plan approved in accordance with the procedure specified in Article 33 - 23 of this Code) may determine a different (larger or smaller) scope of powers of the preventive restructuring administrator.
Section III. OPENING OF PREVENTIVE RESTRUCTURING PROCEDURE↑
Article 33 - 4. Application for the opening of preventive restructuring proceedings↑
1. An application for the initiation of a preventive restructuring procedure shall be filed by the debtor with the commercial court at the location of the debtor and shall contain:
1) the name of the commercial court to which the application is submitted;
2) the name of the debtor, its location, identification code of the legal entity or registration number of the taxpayer's registration card, or the series and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport) of an individual entrepreneur;
3) the name of the body (entity) authorized to manage state property in relation to the debtor - a state-owned enterprise or a business company, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state;
4) a statement of the circumstances that constitute grounds for an appeal to the court, including the debtor's insolvency or the threat thereof, as well as information on the existence of circumstances provided for in Part Six of Article 34 of this Code;
5) in cases provided for by this Code - information on the candidacy of the preventive restructuring administrator;
6) confirmation by the debtor that during the calendar year prior to the submission of the application for the initiation of the preventive restructuring procedure, no preventive restructuring procedure was carried out in respect of him/her;
7) a list of documents attached to the application.
2. On behalf of a debtor - a legal entity, an application for the initiation of a preventive restructuring procedure may be submitted by the head or another person in accordance with the constituent documents of the debtor, or by a person determined by a decision of the highest management body, and in relation to a debtor - a state-owned enterprise or a business partnership, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state - also by the body (entity) authorized to manage state property.
3. In cases provided for by this Code, the debtor has the right, in an application for the initiation of preventive restructuring proceedings, to request the court to apply measures to protect the debtor.
4. The following shall be attached to the application for the initiation of preventive restructuring proceedings:
1) decision of the debtor's highest management body to initiate the preventive restructuring procedure;
2) evidence of payment of the court fee, except in cases where, according to the law, the court fee is not subject to payment;
3) in cases provided for by this Code - an agreement with the arbitration manager on the exercise of the powers of the preventive restructuring administrator;
4) preventive restructuring plan, and in cases provided for by this Code - preventive restructuring concept;
5) the debtor's annual financial statements for the last three years;
6) evidence of sending the preventive restructuring plan (concept) to the involved creditors.
5. Statements and motions of the parties, provided for by this Book, shall be sent by the parties to the court in the manner prescribed by the Commercial Procedural Code of Ukraine .
If this Book provides for the obligation of a party to send copies of documents to other parties to the preventive restructuring procedure, such documents may be sent in electronic form in accordance with the procedure specified by the Commercial Procedural Code of Ukraine , using the Unified Judicial Information and Telecommunications System or its separate subsystem (module) that ensures the exchange of documents, by sending to the electronic office of the other party, and in the event that the other party does not have an electronic office or there is no information about the presence of an electronic office of the other party - by postal mail with a description of the attachment, by e-mail (provided that the documents are signed with a qualified electronic signature), delivered against receipt to the party or in another way that allows confirming receipt of the documents and records their content.
6. If the debtor is a micro-entrepreneur or a small business entity, he has the right to submit a preventive restructuring concept together with the application for opening a preventive restructuring procedure.
The concept must contain at least the information provided for in paragraphs 1 , 2 , 4 , 6 and 7 of part one of Article 33-15 of this Code, as well as information on the measures proposed to prevent the debtor's insolvency.
In such a case, the preventive restructuring plan is developed by the debtor with the participation of the preventive restructuring administrator. The debtor is obliged to send the preventive restructuring plan to all involved creditors immediately after its development.
Article 33 - 5. Opening of preventive restructuring proceedings↑
1. The Commercial Court shall consider an application for the initiation of a preventive restructuring procedure within five days from the date of its receipt.
If the preventive restructuring procedure is not within the jurisdiction of a given commercial court, the court shall transfer the application for the opening of the preventive restructuring procedure to the established jurisdiction in accordance with the procedure specified by the Commercial Procedural Code of Ukraine .
2. The Commercial Court shall refuse to initiate preventive restructuring proceedings if:
1) the application for the initiation of a preventive restructuring procedure does not comply with the requirements of this Code;
2) the debtor cannot be subject to a preventive restructuring procedure;
3) a decision of the commercial court has been made regarding the debtor to accept the creditor's application to initiate bankruptcy proceedings;
4) bankruptcy (insolvency) proceedings have been initiated against the debtor or a preventive restructuring plan has been approved and is in the implementation stage;
5) the legal entity - the debtor is in the process of termination or has been terminated in accordance with the procedure established by law;
6) state registration of the termination of the entrepreneurial activity of an individual entrepreneur has been carried out;
7) the debtor was subject to a preventive restructuring procedure during the calendar year prior to the filing of the application for the initiation of the preventive restructuring procedure;
8) the debtor has been held administratively or criminally liable for unlawful actions related to bankruptcy (insolvency) within the previous three years.
The Commercial Court shall issue a ruling refusing to open a preventive restructuring procedure within five days from the date of receipt of the application for opening a preventive restructuring procedure. Such ruling shall be sent to the debtor together with the application and the documents attached to it no later than the next business day after its issuance. A copy of the ruling shall be sent to the state bankruptcy authority.
Refusal to initiate a preventive restructuring procedure does not prevent a repeated application to the commercial court with an application to initiate a preventive restructuring procedure if there are grounds established by this Code.
3. In the absence of grounds for refusing to open a preventive restructuring procedure, the court shall open a preventive restructuring procedure within five days from the date of receipt of the relevant application.
The court issues a ruling on the opening of the preventive restructuring procedure, which states:
1) opening of the preventive restructuring procedure;
2) application of basic measures to protect the debtor and, in cases provided for by this Code, additional measures to protect the debtor;
3) appointment of a preventive restructuring administrator in cases provided for by this Code;
4) the time and place of the final court session of the commercial court, which must take place no earlier than two and no later than six months from the date of the decision to open the preventive restructuring procedure.
If the debtor, together with the application for the opening of the preventive restructuring procedure, submitted a concept for preventive restructuring, the commercial court in the ruling on the opening of the preventive restructuring procedure determines the deadline for the preparation and submission to the court of the preventive restructuring plan, which cannot exceed two months from the date of opening the preventive restructuring procedure.
A copy of the decision is sent to the debtor and the state bankruptcy authority.
4. The Commercial Court shall, no later than the day following the issuance of the ruling on the opening of the preventive restructuring procedure, publish a notice on the opening of the preventive restructuring procedure on the official web portal of the judiciary of Ukraine. The notice shall contain:
1) the name of the debtor, his location, contact details (communication numbers and e-mail addresses), identification code of the legal entity or registration number of the taxpayer's registration card, or series and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport) of an individual entrepreneur;
2) the date of opening the preventive restructuring procedure, case number, name of the commercial court in whose proceedings the preventive restructuring procedure is being conducted;
3) in the event of the appointment of a preventive restructuring administrator - his/her surname, first name and patronymic, location, telephone number and e-mail address, as well as the date of issue and number of the certificate of the right to carry out the activities of an arbitration manager;
4) date of the final court session.
Information on the opening of a preventive restructuring procedure may additionally be published on the official website of the state bankruptcy authority, as well as in any other manner not prohibited by law.
5. Applications, petitions and complaints submitted to the commercial court by the parties, the administrator of preventive restructuring, as well as other persons whose rights have been violated within the framework of the preventive restructuring procedure (representatives of the debtor's employees, shareholders (participants) of the debtor, etc.) shall be considered by the court no later than 10 days from the date of their receipt by the court.
6. The preventive restructuring procedure cannot be suspended.
Article 33 - 6. Appeal against court decisions in the preventive restructuring procedure↑
1. Decisions of the commercial court issued in the preventive restructuring procedure based on the results of the commercial court's consideration of applications, petitions and complaints may be appealed by the parties in an appeal procedure in accordance with the Commercial Procedural Code of Ukraine .
2. The decisions of the commercial court of appeal adopted as a result of the review of court decisions, except for the decision on approval or refusal to approve the preventive restructuring plan and the decision on closing the preventive restructuring procedure, are not subject to appeal in cassation.
3. The case materials shall be sent to the appellate or cassation court in accordance with the procedure specified in Article 9 of this Code.
4. Appealing the decision on approval of the preventive restructuring plan does not suspend the implementation of such plan. At the request of the debtor or an involved creditor, the court may, by its decision, suspend the implementation of the preventive restructuring plan or its individual measures, if this is necessary and appropriate for the protection of the rights and interests of the debtor or an involved creditor.
Section IV. DEBTOR AND DEBTOR'S RIGHTS IN PREVENTIVE RESTRUCTURING PROCEDURE↑
Article 33 - 7. Debtor in preventive restructuring procedure↑
1. The opening of a preventive restructuring procedure cannot be a basis for the termination of the powers of the debtor's management bodies.
2. Members of the debtor's executive body in the preventive restructuring procedure are obliged to act conscientiously and reasonably, taking into account the interests of the debtor and creditors, and not to take actions to the detriment of creditors.
3. During the preventive restructuring procedure, the debtor is prohibited from:
1) to commit transactions that worsen his financial condition or harm the interests of creditors, except for cases provided for by this Code;
2) provision of a loan, non-refundable financial assistance, surety, guarantee, alienation or encumbrance of property, except for cases provided for in a restructuring plan approved by the court;
3) pay dividends to founders (participants, shareholders), bonuses and premiums to members of the debtor's management bodies;
4) to perform other transactions in violation of the procedure or conditions specified in this Book.
4. During the preventive restructuring procedure, the debtor is obliged to:
1) strictly adhere to the preventive restructuring plan approved by the court;
2) at the request of the court, the preventive restructuring administrator or the involved creditors, provide complete and reliable information on the progress of the preventive restructuring procedure. The debtor is obliged to provide the requested information within five days from the date of receipt of the request;
3) notify the preventive restructuring administrator and involved creditors of significant changes in the financial condition, changes in information contained in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations, information about any circumstances that prevent the debtor from developing, approving or implementing the preventive restructuring plan, the relevance of measures to protect the debtor, as well as the occurrence of circumstances specified in Part Six of Article 34 of this Code. The debtor shall provide the said notification within 10 days from the date of occurrence of the relevant circumstances;
4) if the preventive restructuring procedure is carried out without the appointment of a preventive restructuring administrator - provide, in cases, in the manner and within the time limits determined by the state bankruptcy authority, information on the progress of the preventive restructuring procedure.
5. During the preventive restructuring procedure, the provisions of Part Six of Article 34 of this Code shall not apply to the debtor.
Article 33 - 8. Transactions of the debtor in the preventive restructuring procedure↑
1. The preventive restructuring plan may establish the procedure and features of the debtor's performance of significant transactions.
2. If the debtor commits transactions in violation of the requirements of this Book, such transactions may be declared invalid by the court upon the creditor's claim.
3. The opening of a preventive restructuring procedure and the adoption of measures to protect the debtor cannot be the basis for:
1) changes, termination or non-performance of contracts concluded with the debtor;
2) the creditor may demand early performance of the obligation;
3) application of contractual terms to the debtor to the detriment of the debtor, including increased interest rates or imposition of additional obligations.
4. Provisions of agreements concluded by the debtor prior to the opening of the preventive restructuring procedure that do not meet the requirements specified in Part Three of this Article shall be invalid.
Article 33 - 9. Interim financing↑
1. The debtor, with the consent of the commercial court, has the right to attract interim financing from third parties.
2. To obtain consent, the debtor submits an application to the commercial court for the attraction of interim financing.
The debtor's application must contain the name, location, identification code of the legal entity or the registration number of the taxpayer's registration card, or the series and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority and have a mark in their passport) of the individual - the provider of interim financing, the essential terms of the agreement, the conditions for ensuring the fulfillment of the obligation by the debtor, and the justification for the need to attract interim financing.
Drafts of relevant agreements are attached to the application.
3. The court shall consider the application for interim financing within 10 days from the date of its receipt.
The preventive restructuring administrator (if appointed) shall submit to the court an opinion on the compliance of the transaction on attracting interim financing with the requirements of this article.
The involved creditors have the right to file their objections to the involvement of interim financing with the court.
The court grants permission to raise interim financing if:
1) the attraction of interim financing is justified and necessary for the continuation of the debtor's activities (conducting ordinary business activities) or for preserving or increasing the value of the debtor's assets;
2) attracting interim financing is in the interests of both the debtor and the creditors;
3) the attraction of interim financing will not lead to the insolvency of the debtor;
4) the terms of the transaction for attracting intermediate financing correspond to normal market conditions.
The court issues a ruling on granting consent to attract interim financing.
4. A transaction to attract interim financing, concluded in accordance with the procedure and on the terms provided for in this article, in the event of subsequent initiation of proceedings in the debtor's bankruptcy case, may not be recognized by a commercial court as invalid on the basis of Article 42 of this Code or as a fraudulent transaction.
5. If bankruptcy proceedings are subsequently opened against the debtor, the claims of the creditor who provided interim financing (except if the transaction to attract interim financing is recognized by the commercial court within the framework of the debtor's bankruptcy procedure as invalid on grounds other than on the basis of Article 42 of this Code, or as a fraudulent transaction) shall be satisfied first.
Article 33 - 10. Transactions of the debtor that provide for the preventive restructuring procedure↑
1. In order to ensure the implementation of the preventive restructuring procedure, the debtor has the right to enter into transactions that are justified and necessary for:
1) preparation and approval of a preventive restructuring plan;
2) implementation of the preventive restructuring plan approved by the court.
2. The transactions provided for in paragraph 1 of part one of this article include transactions regarding:
1) conducting negotiations, agreeing with creditors and submitting a preventive restructuring plan to the court (involving valuation entities, renting premises, equipment, etc.);
2) obtaining professional advice related to the preventive restructuring procedure (engagement of auditors, lawyers, other specialists or experts, etc.);
3) carrying out the debtor's ordinary business activities.
3. The transactions provided for in this Article, subject to the subsequent approval of the preventive restructuring plan by the commercial court, shall be subject to the guarantees provided for in Part Five of Article 33-9 of this Code.
Article 33 - 11. Measures to protect the debtor↑
1. Debtor protection measures are applied to facilitate negotiations between the debtor and creditors regarding the development and approval of a preventive restructuring plan, ensuring the possibility of its further implementation.
2. Measures to protect the debtor are divided into basic ones - those that are applied from the moment of opening the preventive restructuring procedure, and additional ones - those that are applied by the court upon a motivated application of the debtor.
3. From the moment of opening the preventive restructuring procedure of the debtor, the following basic measures of protection of the debtor shall apply:
1) bankruptcy proceedings may not be initiated against the debtor;
2) the accrual of fines and other financial sanctions on the debtor's obligations to involved creditors is suspended;
3) any alienation and disposal of the debtor's property (except for disposal of property within the framework of ordinary business activities) shall be carried out exclusively in accordance with the procedure provided for in the preventive restructuring plan;
4) increase (reduction) of the authorized capital of the debtor, withdrawal of a participant from the debtor - a limited liability company and additional liability company may be carried out exclusively in accordance with the procedure provided for in the preventive restructuring plan.
Article 33 - 12. Additional measures of protection of the debtor↑
1. The commercial court, upon a motivated application by the debtor, may, within the framework of the preventive restructuring procedure, apply additional measures to protect the debtor.
An application for the application of additional measures to protect the debtor may be filed by the debtor together with an application for the initiation of preventive restructuring proceedings.
Simultaneously with the submission of an application for the application of additional measures to protect the debtor to the court, the debtor sends a copy of the application to the involved creditors, to whose claims it is proposed to apply additional measures to protect the debtor.
2. Additional measures to protect the debtor may be general - those that apply to all involved creditors, or limited - those that apply to individual involved creditors or classes.
3. Additional measures to protect the debtor are:
1) prohibition of forced recovery of funds or property from the debtor on the basis of enforcement documents, except in cases where enforcement proceedings are at the stage of distribution of sums of money recovered from the debtor (including those received from the sale of the debtor's property), as well as recovery of arrears of wages, alimony, compensation for damage caused by injury, other damage to health or death of an individual;
2) prohibition of foreclosure on the subject of collateral (mortgage).
4. The commercial court shall consider the application for additional measures to protect the debtor in a court session within 10 days from the date of its receipt.
5. The court shall apply additional measures to protect the debtor if:
1) the preventive restructuring plan (concept) is justified and there are reasons to believe that such a plan (concept) will be implemented;
2) the debtor has provided complete and reliable information about his financial condition, assets and liabilities;
3) failure to take additional measures to protect the debtor will result in the impossibility of carrying out preventive restructuring or the insolvency of the debtor.
of up to three months, but in any case not longer than the time limit provided for in Article 33-13 of this Code.
7. The court shall issue a ruling on the application of additional measures of protection for the debtor. A copy of the ruling shall be sent to the debtor, the creditors involved, to whose claims additional measures of protection have been applied, and the state enforcement service body, the private enforcement agent, with whom the enforcement proceedings are being carried out.
, extend the period of validity of additional measures to protect the debtor, but not longer than the maximum period provided for in Article 33-13 of this Code.
The application must contain information on the status of the preventive restructuring procedure, measures taken to develop and the prospects for approval of the preventive restructuring plan, as well as justification that extending the period for taking measures will not lead to additional restrictions on the rights and interests of creditors and/or third parties.
Article 33 - 13. Termination of measures to protect the debtor↑
1. The debtor's protection measures (main and additional) shall cease to apply:
1) in the event of the court approving the preventive restructuring plan;
2) in the event of the closure of the preventive restructuring procedure;
3) on the day of the expiration of the maximum period of validity of the debtor's protection measures.
2. The effect of additional measures to protect the debtor, in addition to the grounds provided for in part one of this article, shall also be terminated on the day specified in the economic court's ruling on the application of additional measures to protect the debtor or the ruling on the extension of the term of the additional measures to protect the debtor.
3. The deadline for the debtor protection measures is six months from the date of opening the preventive restructuring procedure. On the day of the deadline, the debtor protection measures shall automatically terminate. Their extension by the court shall not be permitted.
4. If the debtor has applied to the commercial court with an application for approval of a preventive restructuring plan during the period of the debtor's protection measures:
1) the effect of additional measures to protect the debtor shall continue until the court completes consideration of the application, but no longer than the time limit provided for in part three of this article;
2) the main measure of protection of the debtor, provided for in paragraph 1 of part three of Article 33-11 of this Code, shall be effective until the court completes consideration of the application for approval of the preventive restructuring plan .
Article 33 - 14. Cancellation of measures to protect the debtor↑
1. The effect of measures to protect the debtor (main and/or additional) may be canceled by the court in whole or in part (in terms of individual main and/or additional measures of protection) upon application by the debtor, the preventive restructuring administrator or an involved creditor with respect to all or individual involved creditors or classes if:
1) additional protection measures for the debtor are not necessary (have lost their relevance) to achieve the goal of preventive restructuring, including if the cancellation of additional protection measures does not pose a threat to the possibility of implementing the preventive restructuring plan;
2) as a result of the additional measures taken to protect the debtor, there is a reasonable risk of loss or damage to the collateral (mortgage);
3) the action of measures to protect the debtor may result in the insolvency (bankruptcy) of the creditor;
4) the debtor commits actions to the detriment of creditors or actions that cast reasonable doubt on the possibility of implementing the preventive restructuring plan;
5) the debtor submitted to the court knowingly false information in the application for additional measures of protection of the debtor;
6) the debtor has not submitted a preventive restructuring plan to the court within the period specified in part three of Article 33-5 of this Code;
7) the measures to protect the debtor no longer serve the purpose of supporting negotiations between the debtor and creditors on the development and approval of a preventive restructuring plan due to the fact that some of the creditors who have a decisive influence on the approval of the preventive restructuring plan do not support the continuation of negotiations. The provisions of this paragraph shall not apply if the debtor has filed an application with the commercial court for approval of the preventive restructuring plan, as provided for in Article 33 - 23 of this Code.
2. If additional measures to protect the debtor were applied by the commercial court on the basis of the debtor's application, which contained knowingly false information, the debtor shall be obliged to compensate the injured party for the losses caused by the effect of such measures to protect the debtor.
3. The commercial court shall issue a ruling on the cancellation of the debtor's protection measures. A copy of the ruling shall be sent to the debtor, the involved creditors to whose claims additional measures of protection of the debtor have been applied, and to the state enforcement service body, the private enforcement agent with whom the enforcement proceedings are being carried out.
In the event of the occurrence of circumstances provided for in paragraph 2 of part one of this article, and if the right to carry out the activities of an arbitration manager is suspended for a period of more than three days, the arbitration manager shall be obliged to notify the state bankruptcy authority in writing no later than one working day before the day of suspension of his activities, indicating the reason and term of the temporary suspension.
Section V. PREVENTIVE RESTRUCTURING PLAN↑
Article 33 - 15. Preventive restructuring plan↑
1. Preventive restructuring is carried out in accordance with a preventive restructuring plan, which is developed in accordance with the procedure and within the time limits specified in this Book and must contain information on:
1) the debtor, his financial condition, reasons for insolvency or the threat thereof;
2) the debtor's monetary obligations, the due date of which has come before the opening of the preventive restructuring procedure or will come during the procedure, including obligations secured by the debtor's property, obligations to creditors interested in the debtor, indicating the amount of the penalty (fines, penalties) and other financial sanctions for breach of the obligation;
3) other obligations of the debtor that are not monetary, but the fulfillment of which significantly affects the debtor's assets;
4) involved creditors, indicating their name, location, identification code of the legal entity or registration number of the taxpayer's registration card, or the series and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority and have a mark in their passport) of the individual entrepreneur and the amount of their claims;
5) the classes into which the parties to the preventive restructuring are divided, and the size of the claims of each class of involved creditors;
6) uninvolved creditors, indicating the information provided for in paragraph 4 of this part, and the amount of their claims, with justification for the reasons for not involving these creditors;
7) the debtor's assets, including assets that are the subject of collateral, and their value;
8) measures of the preventive restructuring plan, the procedure and terms of their implementation, including the procedure and terms of repayment of claims of involved creditors;
9) staffing, number of employees and consequences of implementing the preventive restructuring plan for the debtor's employees;
10) justification of the need to attract new financing if this is provided for in the preventive restructuring plan;
11) forecast of the debtor's activities and cash flows during the period of preventive restructuring;
12) justification that the preventive restructuring plan has a prospect of implementation and meets the criterion of the best interests of creditors.
2. If the debtor's obligations are specified in a foreign currency, the composition and amount of the monetary claims of the involved creditors shall be specified in this currency and shall be fulfilled by the debtor to non-residents in such currency, and to residents - in the national currency at the exchange rate established by the National Bank of Ukraine on the date of fulfillment of the obligation.
3. The debtor and the preventive restructuring administrator (if appointed) shall, in order to develop and approve the preventive restructuring plan after the opening of the preventive restructuring procedure, begin negotiations with the involved creditors regarding the coordination of the preventive restructuring plan and measures.
Negotiations may be conducted with the involved creditor, individual involved creditors, classes of involved creditors, or all parties at a creditors' meeting.
The preventive restructuring administrator (if appointed) may mediate in negotiations between the debtor and the involved creditors.
4. The parties are not bound by the concept of preventive restructuring or may deviate from the proposals of the preventive restructuring plan if this is necessary to achieve success in the negotiations and subsequent approval of the preventive restructuring plan.
the preventive restructuring administrator to monitor the implementation of the plan, establishing all or some powers in accordance with Article 33-3 of this Code, or to determine additional powers of the administrator to monitor the implementation of the preventive restructuring plan.
The specified rule does not apply if the preventive restructuring plan is approved in accordance with the procedure specified in Article 33-23 of this Code. In such a case, the administrator shall exercise all the powers provided for in Part Two of Article 33-3 of this Code.
6. The preventive restructuring administrator, if appointed, shall prepare and provide the debtor with an opinion on the compliance of the preventive restructuring plan with the requirements provided for by this Code, the prospects for its implementation, and compliance with the criterion of the best interests of creditors.
7. If the preventive restructuring plan is not approved seven calendar days before the date of the final meeting of the commercial court and the debtor has reasonable grounds to believe that the plan will be approved by the creditors' meeting, the debtor has the right to apply to the commercial court with a motion to postpone the final meeting.
The application for postponement of the final meeting must contain information on the progress of the preventive restructuring procedure, the status of negotiations with the involved creditors regarding the preventive restructuring plan, the measures taken to develop and the prospects for approval of the preventive restructuring plan, as well as a justification that the postponement of the final meeting will not lead to additional restrictions on the rights and interests of creditors and/or third parties. The Commercial Court, taking into account the circumstances and complexity of the procedure, may postpone the final meeting for a maximum period of no more than 12 months from the date of opening the preventive restructuring procedure.
Article 33 - 16. Measures of the preventive restructuring plan↑
1. The measures contained in the preventive restructuring plan may include:
1) reorganization or re-profiling of the debtor's assets;
2) restructuring of the debtor's obligations, in particular, deferral, installment or forgiveness of debt or part thereof, change of interest rate under loan agreements or credits, change of procedure or method of fulfillment of obligations;
3) attracting new financing;
4) sale of part of the debtor's property;
5) sale of the debtor's entire property complex;
6) asset replacement;
7) fulfillment of the debtor's obligations by the owners (participants, shareholders) of the debtor;
8) increase in the debtor's authorized capital through additional contributions (with the involvement of additional contributions);
9) changes in the debtor's work organization;
10) other measures to restore the debtor's solvency.
2. The sale of part of the debtor's property, the sale of the debtor's entire property complex, and the replacement of assets shall be carried out taking into account Articles 54-56 of this Code in the manner specified in the preventive restructuring plan.
In the event that the debtor submits an application for approval of a preventive restructuring plan in accordance with the procedure specified in Articles 33-23 of this Code, the sale of the debtor's property shall be carried out in accordance with the procedure specified in Articles 68-89 of this Code.
The preventive restructuring procedure does not allow the alienation of state property prohibited from privatization, and the sale of property of a debtor - a state enterprise or a business company, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, in respect of which a decision on privatization has been made.
3. The preventive restructuring plan may provide for the debtor to attract new financing. The guarantees established by this Code for interim financing shall apply to the new financing, if the preventive restructuring plan is approved by the court.
If a condition for attracting new financing is the provision of collateral by a third party, the consent of this person must be attached to the preventive restructuring plan.
Article 33 - 17. Increase in the Authorized Capital of the Debtor↑
1. The preventive restructuring plan may provide for an increase in the debtor's authorized capital in the amount established by the preventive restructuring plan.
2. The procedure for increasing the authorized capital, distributing shares, and paying the value of the share are determined by the preventive restructuring plan.
A general meeting of participants (shareholders) is not required to make relevant decisions, such decisions are deemed to have been made under the terms and conditions specified in the preventive restructuring plan. The preemptive right to acquire a share (additional shares in the case of a private placement of shares) does not apply.
3. An increase in the debtor's authorized capital through additional contributions (with the involvement of additional contributions) may be carried out at the expense of the investor or ordinary unsecured involved creditors (except for creditors interested in the debtor).
4. Increase in the debtor's authorized capital by attracting additional contributions:
1) the investor is carried out only in cash;
2) creditors is carried out by offsetting counterclaims of the same kind between the debtor and the creditors.
5. The issue of shares and bonds of a joint-stock company - debtor is carried out exclusively for the purpose of converting the company's obligations into securities in accordance with the procedure established by the National Securities and Stock Market Commission.
The sale of shares of a joint-stock company in the event of a public offering of shares is carried out in accordance with the law.
In the event that the issue of additional shares of the debtor is recognized as not having taken place or as invalid, the funds received by the debtor from persons who purchased additional shares of the debtor shall be returned to such persons outside the order established by this Code.
6. If the preventive restructuring plan provides for an increase in the debtor's authorized capital through additional contributions (with the involvement of additional contributions) of ordinary unsecured involved creditors, their consent is mandatory. In such a case, all creditors of the relevant class of involved creditors must approve the preventive restructuring plan.
At the same time, in the case of transferring the company's liabilities into shares (shares), the ratio between the size of each creditor's liabilities and the size of the share (number of shares) that he acquires must be maintained.
Article 33 - 18. Preventive restructuring classes↑
1. For the purposes of preparing a preventive restructuring plan and its subsequent approval, the parties to preventive restructuring shall be divided into the following classes:
1) secured creditors;
2) creditors with requirements to the budget (regarding the payment of taxes, fees and other mandatory payments, etc.);
3) unsecured creditors;
4) unsecured creditors interested in the debtor.
2. The preventive restructuring plan may provide for the formation of other classes within the classes, which must be properly delimited, including taking into account the maturity of obligations, the size or term of satisfaction of claims, the nature of obligations, the contentiousness of claims, the identity of the involved creditor - representatives of micro and small businesses, suppliers, state authorities, etc.
The criteria for distinguishing classes should be clearly defined in the preventive restructuring plan.
The debtor independently determines the criteria according to which creditors are involved or not involved in the preventive restructuring plan and according to which they are included in the relevant class of involved creditors. Information about these criteria and grounds must be specified in the preventive restructuring plan.
3. If the preventive restructuring plan provides for an increase in the authorized capital through additional contributions (contributions) to the authorized capital, exchange of corporate rights for debt obligations, reorganization of a legal entity, attraction of new financing, under which the founders (participants, shareholders) of the debtor, the owner of the property (body authorized to manage the property) of the debtor assume new or change existing obligations, or if the implementation of the preventive restructuring plan otherwise establishes, changes or terminates the rights and interests of the founders (participants, shareholders) of the debtor, the owner of the property (body authorized to manage the property) of the debtor, a class of founders (participants, shareholders) of the debtor must be formed.
4. The preventive restructuring plan may not provide for different proportions of satisfaction of the claims of the involved creditors of the same class. Otherwise, all creditors of this class who find themselves in a worse position must agree in writing to the deterioration of their position.
5. The preventive restructuring administrator, if appointed, is obliged to verify the formation of classes of involved creditors, as well as the validity of the amount of their monetary claims, and to notify the involved creditors and the court of the results of the verification.
6. An involved creditor has the right to appeal to the debtor and/or the preventive restructuring administrator (if appointed) with a complaint about the formation of classes of involved creditors and the validity of the amount of its monetary claims or the monetary claims of other involved creditors.
In such a case, the debtor is obliged to provide, upon the written request of the involved creditor, information and documents regarding the claims of other involved creditors within five days from the date of receipt of the claim.
The preventive restructuring administrator, if appointed, shall consider the complaint of the involved creditor regarding the verification of the formation of classes of involved creditors and the reasonableness of the amount of the involved creditor's monetary claims. The administrator shall notify the debtor and the involved creditor of the results of the complaint consideration.
If, as a result of the review of the complaint, the debtor and the involved creditor have not reached an agreement on the formation of classes of involved creditors and the reasonableness of the amount of his monetary claims or the monetary claims of other involved creditors, such involved creditor has the right to apply to the court before the final session of the commercial court with an application to verify the formation of classes of involved creditors and the reasonableness of the amount of his monetary claims or the monetary claims of other involved creditors.
Section VI. APPROVAL AND IMPLEMENTATION OF THE PREVENTIVE RESTRUCTURING PLAN↑
Article 33 - 19. Creditors' Meetings↑
1. In the preventive restructuring procedure, the competence of the creditors' meeting includes making decisions on:
1) election of the candidate for the preventive restructuring administrator;
2) applying to the commercial court with a request to remove the preventive restructuring administrator;
3) conducting negotiations on a preventive restructuring plan;
4) applying to the commercial court with a statement on the termination of the debtor's protection measures;
5) application to the commercial court with a statement on the closure of the preventive restructuring procedure;
6) approval of the preventive restructuring plan;
7) other issues provided for in this Book.
2. A meeting of creditors shall be convened by the debtor at his initiative, at the initiative of the involved creditors, the sum of whose claims is not less than 10 percent of all claims of the involved creditors, or by the preventive restructuring administrator (if appointed).
Creditors' meetings shall be convened and held within 10 days from the date of receipt of a written request for their convening. If, within 10 days from the date on which the debtor received or should have received a request for the convening of a creditors' meeting, the involved creditors have not received a notice of the convening of the meeting, the persons who initiated its holding may convene the creditors' meeting themselves. In such a case, the obligations for convening and preparing for the holding of the creditors' meeting shall be assigned to the persons who initiated the convening of the creditors' meeting.
Creditors' meetings may be held in person at a location designated by the initiator of the convening of the creditors' meeting, or via video conference in accordance with the procedure established by this Code for holding creditors' meetings in a bankruptcy case.
In the case of a creditors' meeting held in person, the venue for the creditors' meeting must be in the locality where the debtor is located.
The creditors' meeting shall be chaired by the preventive restructuring administrator. If no preventive restructuring administrator has been appointed, the creditors' meeting shall be chaired by the involved creditor with the largest monetary claims against the debtor in accordance with the preventive restructuring plan (concept). The creditors' meeting may elect another chairman of the creditors' meeting.
The creditors' meeting is authorized to make decisions on all issues within its competence.
3. The right to cast a decisive vote at the creditors' meeting shall be held by the involved creditors (secured and unsecured) who are not interested parties in relation to the debtor. The representative of the debtor's employees, the authorized person of the founders (participants, shareholders), creditors interested in the debtor, and the administrator of preventive restructuring may participate in the creditors' meeting with the right to an advisory vote.
The number of votes at the creditors' meeting is determined according to the size of the claims of the involved creditors, determined by the plan (concept) of preventive restructuring. When determining the number of votes of creditors with the right of a decisive vote, the amounts of penalties (fines, penalties) and other financial sanctions are not taken into account.
If the debtor's obligations are determined in foreign currency, for the purposes of voting at the creditors' meeting, the amount of creditors' monetary claims shall be determined in the national currency at the exchange rate established by the National Bank of Ukraine on the date of opening the preventive restructuring procedure.
The decision of the creditors' meeting is considered adopted if it is voted for by a majority of the votes of the involved creditors with the right to a decisive vote, included in the preventive restructuring plan (concept).
Article 33 - 20. Approval of a preventive restructuring plan↑
1. To approve the preventive restructuring plan, the debtor shall convene a meeting of creditors by giving written notice to all parties in accordance with the preventive restructuring plan. The notice shall be accompanied by:
1) preventive restructuring plan;
2) the conclusion of the preventive restructuring administrator, if appointed, on the compliance of the preventive restructuring plan with the requirements provided for by this Code, the prospects for its implementation and compliance with the criterion of the best interests of creditors, on the formation of classes of involved creditors and the reasonableness of the amount of monetary claims of involved creditors, including the amount of claims of involved creditors to which the debtor or involved creditors have objections;
3) if the preventive restructuring plan provides for the attraction of new financing - an agreement on the provision of new financing;
4) if available - court decisions based on the results of consideration of applications for the formation of classes of involved parties and the amount of claims of involved creditors.
Simultaneously with sending the notification, the debtor places an announcement about holding a creditors' meeting on the official web portal of the judiciary of Ukraine. The creditors' meeting shall be convened no earlier than 10 days from the date of posting such an announcement.
The creditors' meeting must be convened no later than seven calendar days before the date of the final session of the commercial court.
2. At the creditors' meeting to approve the preventive restructuring plan, each formed class must consider the preventive restructuring plan and decide on its approval.
The debtor shall chair the creditors' meeting to consider the issue of approving the preventive restructuring plan.
3. A preventive restructuring plan shall be deemed to be approved by a class of secured creditors if it is voted for by creditors who have the right to vote and hold two-thirds of the votes of the involved creditors of the total amount of secured claims included in the preventive restructuring plan in that class. Secured creditors who are interested in the debtor shall not have the right to vote on the preventive restructuring plan.
If the preventive restructuring plan provides for a change in the priority of the claims of secured creditors, the preventive restructuring plan must be approved by each such creditor.
4. A preventive restructuring plan shall be deemed to be approved by the classes of unsecured creditors if it is voted for by creditors holding more than 50 percent of the votes of the involved creditors of the total amount of unsecured claims included in the preventive restructuring plan in each class.
5. In the class of founders (participants, shareholders) of the debtor, if its formation is provided for by the preventive restructuring plan, the number of votes is determined in accordance with the size of the participant's share (number of shareholder votes).
6. If the preventive restructuring plan provides for the full repayment of the claims of a separate class of involved creditors immediately after the approval of the preventive restructuring plan, such class shall not have the right to vote on the preventive restructuring plan, and the preventive restructuring plan shall be deemed to be approved by this class of involved creditors.
7. If the preventive restructuring plan provides for the installment, postponement or forgiveness (write-off) of debts for the payment of taxes, fees and other mandatory payments or their part, the collection authorities, if the terms of the preventive restructuring plan in this class are not worse than the terms for satisfying the claims of the class of ordinary unsecured creditors, shall not vote on the preventive restructuring plan, and the preventive restructuring plan shall be deemed approved by this class of involved creditors.
Otherwise, the preventive restructuring plan shall be deemed approved by this class of creditors if it is voted for by creditors holding more than 50 percent of the votes of the involved creditors of the total amount of claims included in the preventive restructuring plan in this class.
8. The preventive restructuring plan shall be deemed approved by the creditors' meeting if it has been approved by all classes formed in accordance with the preventive restructuring plan.
9. If the preventive restructuring plan is not approved by the creditors' meeting, the debtor has the right to continue negotiations with the parties regarding the approval of the plan and resubmit the preventive restructuring plan for consideration by the creditors' meeting in accordance with the procedure specified in this article, or submit an application to the commercial court for approval of the preventive restructuring plan in accordance with Article 33 - 23 of this Code.
Article 33 - 21. Consideration of the preventive restructuring plan by the court↑
1. The debtor is obliged to submit to the commercial court an application for approval of the preventive restructuring plan no later than seven calendar days before the date of the final meeting of the commercial court.
The expiration of the time limits for debtor protection measures is not a reason for refusing to consider and approve the preventive restructuring plan by the court.
2. The following shall be attached to the application for approval of the preventive restructuring plan:
1) a preventive restructuring plan approved by the creditors' meeting and the minutes of the creditors' meeting at which the plan was approved;
2) the conclusion of the preventive restructuring administrator, if appointed, on the compliance of the preventive restructuring plan with the requirements provided for by this Code, the prospects for its implementation and compliance with the criterion of the best interests of creditors, on the formation of classes of involved creditors and the reasonableness of the amount of monetary claims of involved creditors;
3) if the preventive restructuring plan provides for the attraction of new financing - an agreement on the provision of new financing;
4) in cases provided for by this Code - a proposal for the candidacy of the preventive restructuring administrator.
3. The commercial court shall review the preventive restructuring plan for compliance with the requirements provided for in Part One of Article 33-15 of this Code.
If no later than seven calendar days before the date of the final meeting of the commercial court, the court receives an application from an involved creditor to verify the formation of classes and/or the reasonableness of the amount of the involved creditor's claims, the court shall consider such application before the start of consideration of the preventive restructuring plan.
If, before the final hearing, the commercial court has already considered the issue of forming classes of involved creditors and/or the reasonableness of the amount of claims of a specific involved creditor, the commercial court leaves the application of the involved party without consideration.
If, based on the results of considering the application of an involved creditor, the commercial court establishes a violation of the formation of classes of involved creditors and/or the unfoundedness of the amount of the claims of a specific involved creditor, the court shall indicate in its ruling what exactly constitutes a violation of the formation of classes of involved creditors or in what part of the involved creditor's claims are unfounded.
4. If the preventive restructuring plan does not meet the requirements stipulated in part one of Article 33-15 of this Code, or the court establishes that the classes were formed in violation of Article 33-18 of this Code, or the court has made a decision on the unfoundedness of the amount of the claims of the involved creditor, the commercial court returns the application for approval of the preventive restructuring plan together with the plan for revision and postpones the final meeting within the time limit stipulated in part seven of Article 33-15 of this Code.
in Part Four of this Article, the Commercial Court shall consider the preventive restructuring plan at the final meeting.
6. If there are grounds provided for in Part Four of this Article, the commercial court may consider the preventive restructuring plan at the final hearing if:
1) the preventive restructuring plan meets the requirements stipulated in part one of Article 33 - 15 of this Code;
2) in the event of a postponement of the final meeting to finalize the preventive restructuring plan, the deadlines for the debtor's protection measures will expire and the debtor insists on considering the preventive restructuring plan or the deadlines for the preventive restructuring procedure will expire;
3) the formation of classes and/or the reasonableness of the size of the claims of the involved creditors did not affect the results of the vote on the approval of the plan to such an extent that otherwise the preventive restructuring plan would not have been approved by the relevant classes of the involved creditors.
Article 33 - 22. Approval of the preventive restructuring plan by the court↑
1. The Commercial Court shall issue a ruling refusing to approve the preventive restructuring plan if:
1) the creditors' meeting and the approval of the preventive restructuring plan were held in violation of the requirements stipulated in Article 33 - 20 of this Code;
2) the principle of equality of creditors of the same class, enshrined in part four of Article 33-18 of this Code, has been violated;
3) the preventive restructuring plan provides for the attraction of new financing, such financing is not necessary for the implementation of the preventive restructuring plan and harms the rights and interests of the involved creditors;
4) the preventive restructuring plan does not meet the criterion of the best interests of creditors;
5) there are clear grounds to believe that the preventive restructuring plan has no reasonable prospect of being implemented and preventing insolvency or ensuring the viability of the debtor;
6) the debtor provided inaccurate information in the preventive restructuring plan.
2. Paragraphs 4 and 5 of part one of this Article shall be applied by the commercial court only upon a reasoned application by the involved creditor who voted against the approval of the preventive restructuring plan, which must be submitted by the creditor to the court no later than seven calendar days before the date of the final meeting of the commercial court at which the preventive restructuring plan is considered.
3. In the absence of grounds for refusal to approve the preventive restructuring plan, the commercial court shall issue a ruling on approval of the preventive restructuring plan. The ruling on approval of the preventive restructuring plan shall enter into force from the moment of its issuance.
In cases provided for by this Book, the commercial court shall appoint a preventive restructuring administrator, as specified in the resolution approving the preventive restructuring plan.
A copy of the resolution is sent to the debtor, involved creditors, the state enforcement service body, the private bailiff with whom the enforcement proceedings are being carried out, the body authorized to manage the state property of the debtor - a state enterprise or a business partnership, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state.
4. The Commercial Court shall, no later than the day following the date of the court's ruling approving the preventive restructuring plan, publish a notice on the official web portal of the judiciary of Ukraine on the approval of the preventive restructuring plan. The notice shall contain:
1) the name of the debtor, its location, contact details, identification code of the legal entity or the registration number of the taxpayer's registration card, or the series and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport) of an individual entrepreneur;
2) the date of opening the preventive restructuring procedure, case number, name of the commercial court in whose proceedings the preventive restructuring procedure is being conducted;
3) date of approval of the preventive restructuring plan;
4) in the event of the appointment of a preventive restructuring administrator - his/her surname, first name and patronymic, location, telephone number and e-mail address, as well as the date of issue and number of the certificate of the right to carry out the activities of an arbitration manager.
Information on the opening of a preventive restructuring procedure may additionally be published on the official website of the state bankruptcy authority, as well as in any other manner not prohibited by law.
5. In the case provided for in part six of Article 33-20 of this Code, and in the absence of grounds provided for in part one of this Article, the commercial court shall approve a preventive restructuring plan if:
1) the debtor agrees to the approval of the preventive restructuring plan with the amended claims of the involved creditor, which were recognized by the court as unfounded, in the amount determined by the decision of the commercial court on the unfoundedness of the amount of the involved creditor's claims; or
2) the debtor agrees that the involved creditor is recognized as an uninvolved creditor in respect of the increased claims.
If the debtor does not agree with the court's application of paragraph 1 or 2 of this part, the commercial court shall issue a ruling refusing to approve the preventive restructuring plan.
Article 33 - 23. Cross-class approval of the preventive restructuring plan↑
1. If the preventive restructuring plan is not approved in accordance with part eight of Article 33-20 of this Code, the debtor has the right to file an application with the commercial court for cross-class approval of the preventive restructuring plan. The application is filed by the debtor and considered by the commercial court in the manner specified in Articles 33-21 and 33-22 of this Code, taking into account the features provided for in this Article .
2. The Commercial Court shall issue a ruling approving the preventive restructuring plan, provided that:
1) there are no grounds for refusing to approve the preventive restructuring plan provided for in parts one and five of Article 33 - 22 of this Code;
2) the preventive restructuring plan was approved at the creditors' meeting:
a) by a majority of the classes of creditors involved, provided that one of these classes is a class of secured creditors or if this condition is not met;
b) at least one of the classes of involved creditors with voting rights, except for the class of founders (participants, shareholders) of the debtor or another class, which in the event of the opening of bankruptcy proceedings against the debtor and the recognition of the debtor as bankrupt or in the event of the court rejecting the preventive restructuring plan and closing the preventive restructuring procedure will not receive any repayment of its monetary claims;
3) the classes of involved creditors with voting rights who voted against the approval of the preventive restructuring plan are in conditions no worse than the classes of involved creditors of the same rank, and in more favorable conditions than the junior classes of involved creditors;
4) no class, as a result of the implementation of the preventive restructuring plan, will receive more than the amount of claims included in the preventive restructuring plan.
3. For the purposes of this Book, ranks (senior and junior classes) are determined in accordance with part one of Article 33 - 18 of this Code.
Article 33 - 24. Assessment of the preventive restructuring plan↑
1. The assessment of the preventive restructuring plan is carried out in relation to:
1) the debtor's compliance with the criterion of the best interests of creditors in the preventive restructuring plan;
2) compliance with the grounds for cross-class approval of the preventive restructuring plan provided for in subparagraph "b" of paragraph 2 of part two of Article 33 - 23 of this Code.
2. The subject of the assessment of the preventive restructuring plan is the assessment of the debtor's property, cash flow analysis, and the reasonableness of the costs provided for in the preventive restructuring plan.
3. The assessment of the preventive restructuring plan shall be carried out only if:
1) the involved creditor who voted against the approval of the preventive restructuring plan at the creditors' meeting, no later than seven calendar days before the final meeting of the commercial court, filed a statement on the non-compliance of the preventive restructuring plan with the criterion of the best interests of creditors; or
2) an involved creditor who is included in the class that voted against the approval of the preventive restructuring plan at the creditors' meeting and cross-class approval of the preventive restructuring plan was applied to this class, no later than seven calendar days before the final meeting of the commercial court, filed an application for non-compliance with the conditions for cross-class approval of the preventive restructuring plan provided for in subparagraph "b" of paragraph 2 of part two of Article 33 - 23 of this Code.
4. The commercial court shall entrust the assessment of the preventive restructuring plan to a specialist, in particular to a subject of assessment activities, or may appoint an expert examination.
The parties have the right to propose to the commercial court candidates for specialists, valuation subjects, and forensic experts.
When selecting a specialist, an entity of valuation activity or an entity of forensic expertise, the commercial court is not limited to the candidates proposed by the parties and must take into account their business reputation and the terms of conducting the valuation or expertise, which must be conducted as soon as possible, but not longer than two months.
5. Payment for the services of a specialist, an appraisal entity, or a forensic expert entity shall be borne by the involved creditor who has filed a corresponding application with the court.
Article 33 - 25. Protection of employees' rights in the preventive restructuring procedure↑
1. The preventive restructuring procedure should not affect the rights of employees provided for by labor legislation, including:
1) the right to collective bargaining and strike;
2) the right to receive information and consultations regarding the preventive restructuring procedure.
2. In the event of preparation for and during the preventive restructuring procedure, the debtor shall be obliged to:
1) inform employee representatives about recent events and likely changes in the debtor's activities and economic situation no later than 10 days from the date of their occurrence;
2) inform employee representatives about the preventive restructuring procedure, which may affect employee employment;
3) inform and consult with employee representatives on the preventive restructuring plan before it is submitted for approval by the creditors' meeting and approval by the court.
3. Employees participate in the preventive restructuring procedure through a representative of the debtor's employees, elected in accordance with the procedure specified in this Code.
Article 33 - 26. Consequences of approval of preventive restructuring plan and monitoring of its implementation↑
1. A preventive restructuring plan approved by the commercial court is binding on all involved creditors, including those who voted against the approval of the preventive restructuring plan.
2. The commercial court, upon application by the preventive restructuring administrator, if appointed, or the debtor, shall lift the seizure of the debtor's property or other restrictions on his property, if such seizure or restrictions impede the implementation of the preventive restructuring plan.
3. The preventive restructuring administrator, if appointed, or the debtor shall submit a monthly report to the commercial court on the implementation of the preventive restructuring plan.
4. Changes to the preventive restructuring plan shall be made in accordance with the procedure established for its approval.
5. The debtor and the involved creditor may, by concluding an agreement, change their rights and obligations stipulated in the preventive restructuring plan, in particular, provide for a postponement or installment of execution, if such change does not provide an advantage to the involved creditor compared to the terms of the preventive restructuring plan. A copy of such agreement shall be sent to the preventive restructuring administrator, the involved creditors and to the court.
Chapter VII. CLOSURE OF THE PREVENTIVE RESTRUCTURING PROCEDURE↑
Article 33 - 27. Closure of preventive restructuring procedure↑
1. The Commercial Court shall close the preventive restructuring procedure in the event of:
1) implementation by the debtor of the preventive restructuring plan;
, in the case provided for in Part Three of Article 33-5 of this Code, has not submitted a preventive restructuring plan within the time limits established by the commercial court;
3) termination in accordance with the procedure established by law of the legal entity - debtor, as recorded in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations;
4) termination of the entrepreneurial activity of an individual - entrepreneur - debtor;
5) opening, in cases provided for by this Code, proceedings in a case of bankruptcy (insolvency) of the debtor;
6) submission by the debtor of an application for the closure of the preventive restructuring procedure;
7) adoption by the commercial court of a decision to refuse to approve the preventive restructuring plan, including in the procedure of cross-class approval of the preventive restructuring plan;
8) failure to implement the preventive restructuring plan - upon application by the debtor, the preventive restructuring administrator, if appointed, or the involved creditor;
9) if the commercial court has not approved the preventive restructuring plan within 12 months from the date of opening the preventive restructuring procedure;
10) if the debtor has not eliminated the violations established by part four of Article 33 - 21 of this Code by the date of the final meeting;
11) in other cases provided for by this Code.
2. The decision of the commercial court on the closure of the preventive restructuring procedure cancels all measures of protection of the debtor.
3. A copy of the resolution on the closure of the preventive restructuring procedure shall be sent to the debtor, the involved creditors, the state enforcement service body, the private bailiff with whom the enforcement proceedings are being carried out, the state registrar at the location of the debtor, the body authorized to manage the state property of the debtor - a state enterprise or a business partnership, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state.
Article 33 - 28. Closure of the preventive restructuring procedure in connection with the implementation of the preventive restructuring plan↑
1. Based on the results of the implementation of the preventive restructuring plan, the debtor or the preventive restructuring administrator, if appointed, shall submit to the commercial court an application for approval of the report on the implementation of the preventive restructuring plan, to which shall be attached:
1) report on the implementation of the preventive restructuring plan;
2) evidence of sending a copy of the application to the involved creditors.
2. The Commercial Court shall consider the application for approval of the report on the implementation of the preventive restructuring plan within 10 days from the date of its receipt.
The commercial court shall issue a ruling on the approval of the report on the implementation of the preventive restructuring plan and the closure of the preventive restructuring procedure or on the refusal to approve such a report.
The Commercial Court, in its ruling on approving the report on the implementation of the preventive restructuring plan and closing the preventive restructuring procedure, notes that the executive documents on the claims of the involved creditors included in the preventive restructuring plan are recognized as unenforceable.
3. Creditors' claims for penalties (fines, penalties) and other financial sanctions for breach of obligation, as well as claims of creditors that are forgiven (written off) in accordance with the preventive restructuring plan approved by the court, are considered to be repaid (forgiven) after the completion of the preventive restructuring plan, as the commercial court shall note in the ruling on the closure of the preventive restructuring procedure.
Chapter VIII. SIMPLIFIED PROCEDURE FOR PREVENTIVE RESTRUCTURING↑
Article 33 - 29. Simplified preventive restructuring procedure↑
1. The debtor has the right to apply to the commercial court with an application for the initiation of a preventive restructuring procedure and approval of a preventive restructuring plan in a simplified manner, taking into account the features provided for in this article, provided that the following requirements are met:
1) the debtor, outside the preventive restructuring procedure provided for in this Book, has developed a preventive restructuring plan that meets the requirements provided for in part one of Article 33-15 of this Code;
2) the debtor has received approval of the preventive restructuring plan by the involved creditors, whose votes are sufficient to approve the preventive restructuring plan in accordance with the requirements of Articles 33 - 20 of this Code;
3) the preventive restructuring administrator has provided an opinion on the compliance of the preventive restructuring plan with the requirements provided for in this Book;
4) the debtor sent the approved preventive restructuring plan to all involved creditors simultaneously with its submission to the court for approval.
2. The Commercial Court shall consider the preventive restructuring plan in the manner prescribed by this Book.
3. The provisions of Articles 33 - 23 of this Code shall not apply to the simplified preventive restructuring procedure.
{The Code was supplemented with a new book in accordance with Law No. 3985-IX of September 19, 2024 }
BOOK FOUR. BANKRUPTCY OF LEGAL ENTITIES
Section I. BANKRUPTCY PROCEEDINGS↑
Article 34. Application for the opening of bankruptcy proceedings↑
1. An application for the initiation of bankruptcy proceedings shall be filed by the creditor or debtor or the National Bank of Ukraine in cases provided for by this Code, in writing and shall contain:
{Paragraph one of part one of Article 34 as amended by Law No. 3249-IX of 07/13/2023 ; as amended by Law No. 3254-IX of 07/14/2023, taking into account the amendments made by Law No. 3498-IX of 11/22/2023 ; as amended by Law No. 3985-IX of 09/19/2024 }
name of the commercial court to which the application is submitted;
name of the debtor, its location, identification code of the legal entity;
the name or business name of the creditor, its location or place of residence, the identification code of the legal entity or the registration number of the taxpayer's registration card, or the series and number of the passport (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport);
name of the body (entity) authorized to manage state property in relation to the debtor - a state-owned enterprise or a business company, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state;
a statement of the circumstances that are the basis for applying to court;
list of documents attached to the application.
{Part one of Article 34 as amended by Law No. 2971-IX of March 20, 2023 }
2. The following shall be attached to the creditor's application for the initiation of bankruptcy proceedings:
evidence of payment of the court fee, except in cases where, according to the law, the court fee is not subject to payment;
a power of attorney or other document certifying the authority of the representative, if the application is signed by the representative;
evidence of advance payment of remuneration to the arbitration manager in the amount of three minimum wages for three months of performance of duties;
evidence of sending a copy of the application and the documents attached to it to the debtor.
The application of the creditor - the controlling body authorized in accordance with the Tax Code of Ukraine to take measures to ensure the repayment of tax debt and arrears in payment of a single contribution for mandatory state social insurance within the limits of its powers, to another body that, in accordance with the law, exercises control over the collection of other mandatory payments for mandatory state social insurance, shall be accompanied by evidence of taking measures to collect (repay) tax debt or other debt in accordance with the procedure established by law.
3. The creditor's application, in addition to the information provided for in part one of this article, must contain information about the amount of the creditor's claims against the debtor, indicating separately the amount of the penalty (fine, penalty) to be paid, as well as information about the creditor's interest in the debtor.
{Paragraph one of part three of Article 34 as amended by Law No. 3985-IX of September 19, 2024 }
The creditor's claim may be based on the debtor's consolidated debt for the aggregate of his various obligations to that creditor.
Creditors have the right to consolidate their claims against the debtor and apply to the court with one joint application. Such an application is signed by all creditors who have consolidated their claims against the debtor.
4. The following shall be attached to the debtor's application for the initiation of bankruptcy proceedings:
{Paragraph two of part four of Article 34 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
a power of attorney or other document certifying the authority of the representative, if the application is signed by the representative;
evidence of insolvency or threat thereof;
{Paragraph four of part four of Article 34 as amended by Law No. 3985-IX of September 19, 2024 }
evidence of advance payment of remuneration to the arbitration manager in the amount of three minimum wages for three months of performance of duties;
constituent documents of the debtor - legal entity;
the debtor's balance sheet as of the last reporting date;
a list of creditors of the debtor, whose claims are recognized by the debtor, indicating the total amount of monetary claims of all creditors, as well as for each creditor - the name or business name, location or place of residence, identification code of the legal entity or registration number of the taxpayer's registration card, or series and number of the passport (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport), the amount of monetary claims (the total amount of debt, debt under the main obligation and the amount of the penalty (fine, penalty) separately), the grounds for the occurrence of the obligations, as well as the term for their fulfillment in accordance with the law or contract;
a list of the debtor's property, indicating its book value and location, as well as the total book value of the property;
a list of property that is pledged or otherwise encumbered, its location, value, as well as information about the creditors in whose favor the debtor's property is encumbered - name or title, location or place of residence, identification code of the legal entity or registration number of the taxpayer's registration card, or series and number of the passport (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport), the amount of monetary claims, the grounds for the occurrence of obligations, as well as the term for their performance in accordance with the law or contract;
{Paragraph eleven of part four of Article 34 was excluded on the basis of Law No. 3985-IX of September 19, 2024 }
a list of persons who have unfulfilled obligations to the debtor, indicating the value of such obligations, the deadline for fulfillment and the reasons for their occurrence;
information about all accounts in depository institutions of the debtor, opened in banks and other financial and credit institutions, their details;
information about all accounts on which rights to securities belonging to the debtor are recorded, their details;
information about all accounts, electronic wallets opened with non-bank payment service providers, electronic money issuers belonging to the debtor, their details;
{Part four of Article 34 is supplemented with a new paragraph in accordance with Law No. 2888-IX of January 12, 2023 }
{Paragraph sixteen of part four of Article 34 was excluded on the basis of Law No. 3985-IX of September 19, 2024 }
a copy of a special permit to conduct activities related to state secrets and a certificate confirming that the debtor has material carriers of secret information (technical documentation, products, prototypes, etc.);
{Paragraph of part four of Article 34 as amended by Law No. 2971-IX of March 20, 2023 }
a decision of the highest management body of the debtor, and in relation to the debtor - a state-owned enterprise or a business company in whose authorized capital more than 50 percent of the shares (shares) belong to the state - of the body (entity) authorized to manage state property on an application to the commercial court with an application to initiate proceedings in the case;
{Paragraph of part four of Article 34 as amended by Law No. 2971-IX of March 20, 2023 }
{Paragraph nineteen of part four of Article 34 was excluded on the basis of Law No. 3249-IX of 13.07.2023 }
other documents confirming the debtor's insolvency or the threat thereof.
{Paragraph twenty of part four of Article 34 as amended by Law No. 3985-IX of September 19, 2024 }
{Paragraph twenty-one of part four of Article 34 was excluded on the basis of Law No. 3985-IX of September 19, 2024 }
{Paragraph twenty-two of part four of Article 34 was excluded on the basis of Law No. 3985-IX of September 19, 2024 }
5. The debtor shall file an application with the commercial court if he has property sufficient to cover the costs associated with the proceedings in the case, unless otherwise provided for by this Code.
On behalf of a debtor - a legal entity, an application may be submitted by a manager or another person in accordance with the debtor's statutory documents, or by a person determined by a decision of the highest management body, and in the case of a debtor - a state-owned enterprise or a business partnership, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state - also by a body (entity) authorized to manage state property.
{Part five of Article 34 is supplemented by paragraph two in accordance with Law No. 3985-IX of September 19, 2024 }
6. The debtor is obliged to apply to the commercial court within a month with an application to initiate bankruptcy proceedings in the event of insolvency, in particular if the satisfaction of the claims of one or more creditors will lead to the impossibility of fulfilling the debtor's monetary obligations in full to other creditors or if the amount of the debtor's monetary obligations, the due date for which has come, exceeds the value of the debtor's assets, and in other cases provided for by this Code.
{Paragraph one of part six of Article 34 as amended by Law No. 3985-IX of September 19, 2024 }
If the debtor's management bodies have violated these requirements, they shall bear joint and several liability for failure to satisfy the creditors' claims. The issue of violation of the debtor's management bodies of the specified requirements shall be considered by the commercial court during the proceedings in the case. If such a violation is detected, this shall be noted in the commercial court's ruling, which shall be the basis for the creditors to further address their claims to the specified persons.
{Part six of Article 34 as amended by Law No. 2971-IX of March 20, 2023 }
7. The following shall be attached to the application of the National Bank of Ukraine to initiate bankruptcy proceedings:
evidence of payment of the court fee, except in cases where, according to the law, the court fee is not subject to payment;
power of attorney or other document certifying the authority of the representative;
evidence of advance payment of remuneration to the arbitration manager in the amount of three minimum wages for three months of performance of duties;
decision of the National Bank of Ukraine to classify an insurer or credit union as insolvent.
{Article 34 is supplemented by part seven in accordance with Law No. 3254-IX of 14.07.2023 }
Article 35. Acceptance of an application for the initiation of bankruptcy proceedings↑
1. In the absence of grounds for refusing to accept, leaving without action, or returning an application for the initiation of bankruptcy proceedings, the commercial court shall accept the application for consideration, and shall issue a ruling on this no later than five days from the date of its receipt, stating:
date of the preparatory court session;
surname, first name and patronymic of arbitration managers determined by automated selection using the Unified Judicial Information and Telecommunications System from among persons entered in the Unified Register of Arbitration Managers of Ukraine.
By a ruling on accepting an application to initiate proceedings in a case, the commercial court has the right to resolve the issue of:
the obligation of the applicant, debtor and other persons to provide the court with additional information necessary to resolve the issue of opening bankruptcy proceedings;
taking measures to secure creditors' claims by prohibiting the owner of the debtor's property (the body authorized to manage the property) and the debtor from making decisions on the debtor's liquidation, reorganization, and alienation of fixed assets.
2. The preparatory court session shall be held no later than 14 days from the date of the decision on acceptance of the application to initiate proceedings in the case, and if there are good reasons (payment of monetary obligations to creditors, etc.) - no later than 20 days.
3. The decision on acceptance of the application for initiation of proceedings in the case shall be sent to the parties and to the state enforcement service body, the private enforcement agent with whom the enforcement proceedings are being carried out, the state registrar at the location of the debtor, the body authorized to manage the state property of the debtor - a state enterprise or a business partnership in whose authorized capital more than 50 percent of the shares (shares) belong to the state, the arbitration manager determined by automated selection using the Unified Judicial Information and Telecommunications System from among the persons entered in the Unified Register of Arbitration Managers of Ukraine.
{Part Three of Article 35 as amended by Law No. 2971-IX of March 20, 2023 }
4. In the event of filing with the court before the opening of bankruptcy proceedings and the court accepting for consideration two or more creditors' applications for the opening of bankruptcy proceedings, the commercial court shall appoint all applications accepted by the court for consideration for their consideration in one preparatory court session, following the results of which, based on the application filed first, if it complies with the requirements of this Code, it shall open bankruptcy proceedings. The commercial court shall leave other applications without consideration.
In the event that the commercial court makes a decision to refuse to open bankruptcy proceedings based on the creditor's application filed first, the commercial court shall consider other applications in the order of their submission to the court by the creditors.
Leaving a creditor's application for the initiation of bankruptcy proceedings without consideration on the grounds specified in this article does not prevent such a creditor from filing claims against the debtor as a bankruptcy creditor in accordance with the procedure specified in Article 45 of this Code.
{Article 35 is supplemented by part four in accordance with Law No. 3985-IX of September 19, 2024 }
Article 36. Debtor's response↑
1. The debtor shall, before the date of the preparatory meeting, submit to the commercial court and the applicant a response to the application for the initiation of proceedings in the case. The debtor's response shall be accompanied by evidence of sending a copy of the response to the applicant.
2. In addition to the information provided for by the Commercial Procedural Code of Ukraine , the debtor's response shall include:
the debtor's objection to the claims of the applicant(s);
the total amount of the debtor's debt to creditors under obligations that provide for the payment of funds, including for the payment of taxes and fees (mandatory payments), for the payment of wages;
information about the debtor's property, as well as all of the debtor's accounts in banks and other financial and credit institutions, account details;
information about all accounts in which rights to securities belonging to the debtor are recorded in depository institutions, their details;
information about all accounts, electronic wallets opened with non-bank payment service providers, electronic money issuers belonging to the debtor, their details;
{Part two of Article 36 is supplemented with a new paragraph in accordance with Law No. 2888-IX of 12.01.2023 }
information about the debtor's activities related to state secrets;
evidence of the applicant's unfounded claims (if any).
3. The debtor's response may also include other information that is important for the consideration of the case.
{Paragraph two of part three of Article 36 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
The appeal is also accompanied by a certificate from the privatization authorities (authorized bodies to manage state-owned objects) on the presence or absence on the balance sheet of the enterprise in respect of which a resolution was passed to accept an application to initiate proceedings in the case, of state property that was not included in the debtor's authorized capital during the privatization (corporatization) process.
{Paragraph three of part three of Article 36 as amended by Laws No. 2971-IX of 20.03.2023 , No. 3249-IX dated 13.07.2023 }
4. The absence of a response to the application to initiate proceedings in a case does not prevent the proceedings in the case.
Article 37. Refusal to accept an application to initiate proceedings in a case, leaving the application without action↑
1. The Commercial Court shall, no later than five days from the date of receipt of the application to initiate proceedings in a case, refuse to accept the application to initiate proceedings in a bankruptcy case if:
proceedings in the case of bankruptcy of the debtor are not permitted under this Code or the law;
{Paragraph two of part one of Article 37 as amended by Law No. 2971-IX of 03/20/2023 }
a preventive restructuring procedure has been initiated in respect of the debtor and measures to protect the debtor are in force, as provided for in paragraph 1 of part three of Article 33-11 of this Code;
{Paragraph three of part one of Article 37 as amended by Law No. 3985-IX of September 19, 2024 }
the debtor has a preventive restructuring plan approved by the court and the application has been received from the involved creditor and there is no evidence of the debtor's failure to fulfill obligations under such a preventive restructuring plan;
{Paragraph four of part one of Article 37 as amended by Law No. 3985-IX of September 19, 2024 }
the legal entity - the debtor is terminated in accordance with the procedure established by law.
2. The commercial court shall issue a ruling on the refusal to accept the application, which shall be sent to the applicant together with the application and the documents attached to it.
3. The commercial court shall leave without motion the application for the initiation of proceedings in the case on the grounds provided for in Article 174 of the Commercial Procedure Code of Ukraine, taking into account the requirements of this Code.
Article 38. Return, withdrawal of the application for initiation of proceedings in a case↑
1. The Commercial Court shall return the application and the documents attached to it no later than five days from the date of receipt of the application for the initiation of proceedings in the case or the expiration of the period for eliminating the shortcomings of the application, if:
{Paragraph one of part one of Article 38 as amended by Law No. 2971-IX of March 20, 2023 }
the application was submitted by a person who lacks procedural capacity, was not signed or was signed by a person who does not have the right to sign it, or by a person whose official position is not indicated;
before the decision to initiate proceedings in the case was made, an application was received from the applicant to withdraw the application to initiate proceedings in the case;
the applicant has filed another application to this court to initiate bankruptcy proceedings against the same debtor and, at the time of resolving the issue of initiating proceedings in the case, no decision has been made regarding such application to initiate or refuse to initiate bankruptcy proceedings, return the application to initiate proceedings in the case, or leave the application without action.
{Paragraph four of part one of Article 38 as amended by Law No. 2971-IX of March 20, 2023 }
2. The commercial court shall issue a ruling on the return of the application for initiation of proceedings in the case without consideration.
3. The return of an application to initiate bankruptcy proceedings does not prevent a repeated application with such an application to the commercial court in accordance with the established procedure.
4. In the event of the return of the application for the initiation of bankruptcy proceedings on the grounds provided for in paragraph four of part one of this article, the court fee paid for filing the application shall not be refunded.
5. If several applications for the initiation of bankruptcy proceedings are filed by different applicants and one of them is returned without consideration, the judge shall consider the other applications for the initiation of bankruptcy proceedings.
6. The application to initiate bankruptcy proceedings may be withdrawn by the applicant(s) prior to the date of the preparatory meeting of the commercial court.
In the event of withdrawal of the application for the initiation of bankruptcy proceedings before the decision on its adoption is made, the commercial court shall issue a decision on the return of the application for the initiation of bankruptcy proceedings.
In the event of withdrawal of the application for the initiation of bankruptcy proceedings after the decision on its acceptance has been made before the date of the preparatory court session, the commercial court shall issue a decision to leave the application without consideration.
The commercial court has the right not to accept the withdrawal of the application to initiate proceedings in the case if it violates the rights or legally protected interests of any persons or if the commercial court has received another application(s) from the creditor(s) to initiate proceedings in the bankruptcy case.
The debtor does not have the right to withdraw the application for the initiation of proceedings in the case submitted by him in accordance with the requirements of part six of Article 34 of this Code.
Article 39. Opening of bankruptcy proceedings↑
1. Verification of the validity of the applicant's claims, as well as clarification of the presence of grounds for initiating bankruptcy proceedings, shall be carried out by the commercial court at a preparatory meeting, which shall be held in accordance with the procedure provided for by this Code.
Failure to appear at the preparatory meeting of the parties and the representative of the state bankruptcy authority, as well as the absence of a response from the debtor, does not prevent the meeting from being held.
2. At the preparatory meeting, the commercial court shall consider the submitted documents, hear the explanations of the parties, assess the validity of the debtor's objections, and resolve other issues related to the consideration of the case.
3. If proceedings are initiated upon the application of a creditor, the commercial court shall verify the debtor's ability to fulfill the property obligations that have fallen due. The debtor may provide proof of his ability to fulfill his obligations and repay the debt.
4. If several applications are received by the commercial court before the day of the preparatory meeting and one of them is accepted by the court for consideration, the others shall be added to the case materials by a decision of the commercial court and shall be considered simultaneously.
If the applicant's claims are recognized as unfounded, the commercial court shall assess the validity of the claims of other creditors' applications attached to the case materials and decide on the issue of initiating proceedings in the case in accordance with the procedure provided for in this article.
5. Based on the results of consideration of the application for initiation of proceedings in the case and the debtor's response, the commercial court shall issue a ruling on:
opening of proceedings in the case;
refusal to initiate proceedings in the case.
6. The commercial court shall refuse to initiate proceedings in a case if:
the creditor's claims indicate the existence of a dispute over the right, which is subject to resolution in the form of a claim;
the claims of the creditor(s) are satisfied by the debtor in full before the preparatory court hearing;
An application has been filed to initiate bankruptcy proceedings against a wholesale electricity supplier.
{Part six of Article 39 is supplemented by paragraph four in accordance with Law No. 3291-IX of 07/28/2023 }
7. Refusal to initiate bankruptcy proceedings does not prevent a repeated application to the commercial court with an application to initiate bankruptcy proceedings if there are grounds established by this Code.
8. The resolution on the opening of bankruptcy proceedings shall state:
opening of bankruptcy proceedings;
recognition of the creditor's claims and their amount;
introduction of a moratorium on satisfying creditors' claims;
introduction of a property disposal procedure;
appointment of the administrator of the property, establishment of the amount of his remuneration and the source of its payment;
taking measures to secure creditors' claims by prohibiting the debtor and the owner of the debtor's property (the body authorized to manage the property) from making decisions on the liquidation, reorganization of the debtor, as well as alienating fixed assets and collateral;
the deadline for the administrator of the property to submit information to the commercial court on the results of the consideration of creditors' claims, which cannot exceed one month and 20 days after the date of the preparatory court session;
the date of the preliminary court session, which must be held no later than 70 calendar days, and in the case of a large number of creditors - no later than three months after the date of the preparatory court session;
the period for the administrator of the property to conduct an inventory of the debtor's property, which cannot exceed two months, and in the case of a significant amount of property - three months after the date of the preparatory court session.
9. In order to identify creditors and persons who have expressed a desire to participate in the debtor's rehabilitation, the commercial court shall publish a notice on the initiation of proceedings in the debtor's case (official publication) on the official web portal of the judiciary of Ukraine no later than the day following the date of the court's ruling on the initiation of proceedings in the case.
Access to information about case proceedings posted on the official web portal of the judiciary of Ukraine is free and free of charge.
The notice of initiation of bankruptcy proceedings must contain the name or business name of the debtor, his location or place of residence, the identification code of the legal entity or the registration number of the taxpayer's registration card, or the series and number of the passport (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport), the name and address of the commercial court, the case number, the date of official publication of the notice, information about the administrator of the property (name, location), the deadline for submitting creditors' applications with claims against the debtor.
Information on the opening of bankruptcy proceedings may additionally be published on the official website of the state bankruptcy authority, as well as in any other manner not prohibited by law.
10. The commercial court may, in its ruling on the initiation of proceedings in the case, oblige the debtor to conduct an audit. If the debtor does not have the funds for this, the commercial court may order the audit to be conducted at the expense of the creditor(s) with his/her consent.
The absence of an audit opinion does not prevent the bankruptcy proceedings.
11. If the debtor's application for the initiation of proceedings in the case or the debtor's response contains information about his/her conduct of activities related to state secrets, the commercial court shall decide and send to the parties and the state bankruptcy authority a resolution to postpone the preparatory court session for the time necessary to issue the arbitration manager with access to state secrets. Such period may not exceed 30 days.
In the event of refusal to grant access to state secrets to the specified arbitration manager, the commercial court shall appoint a new arbitration manager in accordance with the procedure established by this Code.
12. The decision to open bankruptcy proceedings shall enter into force from the moment of its issuance.
The text of the resolution on the initiation of proceedings in a bankruptcy case of a business entity that is a party to a contract regarding financial instruments, currency values, or a party to a derivative contract or commodity transaction, on the day of its resolution, is sent to the person conducting clearing activities to the official email address of such person registered in the Unified Judicial Information and Telecommunications System.
{Part twelve of Article 39 is supplemented by paragraph two in accordance with Law No. 738-IX of June 19, 2020 }
13. The procedure for disposing of property shall be initiated by the commercial court for the period specified in part two of Article 44 of this Code, simultaneously with the issuance of a ruling on the initiation of proceedings in the case.
14. From the moment of initiation of proceedings in the case:
the presentation of claims against the debtor by bankruptcy and secured creditors and their satisfaction may be carried out only in accordance with the procedure provided for by this Code and within the framework of the proceedings in the case;
the presentation of claims by current creditors against the debtor and their satisfaction may be carried out in the case and in the manner provided for by this Code;
seizure of the debtor's property or other restrictions on the debtor's disposal of property belonging to him may be applied exclusively by the commercial court within the framework of bankruptcy proceedings;
the corporate rights of the founders (participants, shareholders) of the debtor are exercised taking into account the restrictions established by this Code;
satisfaction of the demands of the founder (participant) of the debtor - a legal entity for the allocation of a share in the debtor's property in connection with the withdrawal from its participants is prohibited;
A decision on the reorganization or liquidation of a legal entity - a debtor is made in accordance with the procedure established by this Code.
15. The decision to initiate bankruptcy proceedings shall be sent no later than three days from the date of its issuance to the debtor, creditor(s) and other persons participating or to participate in this case (property owner, body authorized to manage the debtor's property, etc.), to the supervisory body specified by the Tax Code of Ukraine , local general court, body of the state enforcement service, private bailiff, with whom the enforcement proceedings are being carried out.
{Paragraph one of part fifteen of Article 39 as amended by Law No. 2971-IX of March 20, 2023 }
In the event of taking measures to secure creditors' claims, a copy of the resolution is also sent to institutions that keep records of real and movable property (state registration bodies of real rights, state notary offices, state automobile inspection bodies at the location of the debtor), banking institutions, non-bank payment service providers that service the debtor's accounts, electronic money issuers that hold electronic wallets belonging to the debtor, depository institutions that keep records of rights to securities belonging to the debtor, as well as the institution that maintains state registers of property encumbrances.
{Paragraph two of part fifteen of Article 39 as amended by Law No. 2888-IX of 12.01.2023 ; as amended by Law No. 2971-IX of 20.03.2023 }
16. When considering the case of a business entity that is a participant (temporary participant) of the Guarantee Fund for the Fulfillment of Obligations under Warehouse Documents for Grain, the Guarantee Fund for the Fulfillment of Obligations under Warehouse Documents for Grain shall be involved in the case.
17. Proceedings in a bankruptcy case of a legal entity shall not be suspended.
Article 40. Securing creditors’ claims↑
1. The commercial court has the right, at the request of the parties or participants in the case or on its own initiative, to take measures to secure the claims of creditors.
The decision to take measures to secure creditors' claims is an executive document and is subject to compulsory execution.
{Part one of Article 40 is supplemented with a new paragraph in accordance with Law No. 2971-IX of 20.03.2023 }
The commercial court, at the request of the administrator of the property, creditors, or on its own initiative, may prohibit the debtor from making transactions without the consent of the administrator of the property, as well as oblige the debtor to transfer securities, property, other valuables for storage to third parties, to perform or refrain from performing certain actions, or to take other measures to preserve the debtor's property and secure the creditors' claims (including by depriving the debtor of the right to dispose of his property or securities without the consent of the administrator of the property or the court considering the bankruptcy case; imposing an arrest on specific movable or immovable property of the debtor), which shall be subject to a ruling.
{Paragraph three of part one of Article 40 as amended by Laws No. 2971-IX of March 20, 2023 , No. 3249-IX of July 13, 2023 }
2. In the procedure for the disposal of property at the request of the administrator of the property, the parties or other participants in the bankruptcy case, which contains confirmed information about the obstruction of the debtor's executive body in the exercise of the powers of the administrator of the property, the failure to take measures to ensure the preservation of the debtor's property, as well as about their actions that violate the rights and legitimate interests of the debtor or creditors, the commercial court has the right to terminate the powers of the debtor's executive body and assign the performance of its duties to the administrator of the property.
The commercial court shall issue a ruling on the termination of the powers of the debtor's executive body and the assignment of its duties to the administrator of the property, which shall be an executive document and shall be subject to compulsory execution.
{Paragraph two of part two of Article 40 as amended by Law No. 3985-IX of September 19, 2024 }
3. From the date of the economic court's decision to terminate the powers of the debtor's executive body, the relevant officials of the debtor, whose powers have been terminated by the economic court's decision, shall be obliged, within three days, to transfer to the property administrator, and the property administrator shall be obliged to accept the debtor's accounting and other documentation, its seals and stamps, material and other valuables.
In the event of evasion from the performance of the specified duties, the relevant officials of the debtor shall be liable for the losses caused to the debtor or creditors by such evasion.
{Part three of Article 40 is supplemented by paragraph two in accordance with Law No. 3985-IX of September 19, 2024 }
4. Measures to secure creditors' claims shall be effective from the date of initiation of the reorganization procedure and appointment of the reorganization manager, or until the adoption of a resolution declaring the debtor bankrupt, opening of liquidation proceedings and appointment of a liquidator, or until the closure of the proceedings in the case.
The commercial court has the right to cancel or change measures to secure creditors' claims before the occurrence of the specified circumstances, which it issues a ruling on.
{Article 40 as amended by Law No. 3985-IX of September 19, 2024 }
Article 41. Moratorium on satisfaction of creditors' claims↑
1. A moratorium on the satisfaction of creditors' claims is a suspension of the debtor's performance of monetary obligations and obligations to pay taxes and fees (mandatory payments), the due date of which has come before the date of the moratorium, and the termination of measures aimed at ensuring the performance of these obligations and obligations to pay taxes and fees (mandatory payments), applied before the date of the moratorium.
2. A moratorium on the satisfaction of creditors' claims shall be imposed simultaneously with the opening of bankruptcy proceedings, as specified in the decision of the commercial court. The decision shall be the basis for suspending enforcement actions. The administrator of the property shall notify the relevant state enforcement service body and the private enforcement agent, who is conducting enforcement proceedings, of the introduction of a moratorium.
{Part two of Article 41 as amended by Law No. 2971-IX of 20.03.2023 }
3. During the moratorium on satisfying creditors' claims:
Collection is prohibited on the basis of executive and other documents containing property claims, including collateral, for which collection is carried out in court or out of court in accordance with the law, except for cases where the enforcement proceedings are at the stage of distributing the sums of money collected from the debtor (including those received from the sale of the debtor's property) or the debtor's property, which is the subject of security, is at the stage of sale from the moment of publication of information about the sale, as well as in the case of enforcement of decisions in non-property disputes;
{Paragraph two of part three of Article 41 as amended by Law No. 3985-IX of September 19, 2024 }
it is prohibited to fulfill the requirements covered by the moratorium;
no penalty (fine, penalty) is charged, no other financial sanctions are applied for failure to fulfill or improper fulfillment of obligations to satisfy all requirements covered by the moratorium;
the limitation period is suspended for the period of the moratorium;
the inflation index is not applied for the entire period of delay in fulfilling the monetary obligation, three percent per annum on the overdue amount, etc.
4. The moratorium on satisfaction of creditors' claims shall apply to creditors' claims for compensation for losses incurred as a result of the debtor's refusal to perform transactions (contracts) in the reorganization procedure, in accordance with the procedure provided for by this Code.
5. The moratorium on the satisfaction of creditors' claims does not apply to the claims of current creditors, the payment of wages and insurance contributions accrued on these amounts for mandatory state pension and other social insurance, the return of unused and timely non-returned funds of mandatory state social insurance in connection with temporary loss of working capacity, compensation for damage caused to the health and life of citizens, the payment of royalties, alimony, as well as to claims under non-property enforcement documents that oblige the debtor to perform certain actions or refrain from performing them.
{Paragraph one of part five of Article 41 as amended by Law No. 2971-IX of March 20, 2023 }
The moratorium does not apply to any actions of the trust owner regarding the trust property object, the trust founder of which is the debtor. The moratorium does not apply to the procedure for mandatory enforcement of the trust property object.
{Part five of Article 41 is supplemented with a new paragraph in accordance with Law No. 132-IX of September 20, 2019 }
The moratorium does not apply to the satisfaction of creditors' claims in the event of simultaneous satisfaction of creditors' claims in the procedure for the disposal of property by the rehabilitation manager in accordance with the rehabilitation plan, as well as by the liquidator in the liquidation procedure in the order of priority established by this Code.
{Paragraph three of part five of Article 41 as amended by Law No. 2971-IX of 20.03.2023 }
Collection of funds on the claims of creditors under obligations not subject to the moratorium, except for cases provided for in Article 94 of this Code, shall be carried out from the debtor's account at a banking institution, non-bank payment service provider, or from the debtor's electronic wallet at an electronic money issuer.
{Paragraph four of part five of Article 41 as amended by Law No. 738-IX of 06/19/2020 ; as amended by Law No. 2888-IX of 01/12/2023 ; /-amendments to paragraph four of part five of Article 41 , adopted by the Law of Ukraine No. 2971-IX dated 20.03.2023 , impossible to enter (second sentence missing) -/; with amendments made in accordance with the Law No. 3249-IX dated 13.07.2023 }
The moratorium does not apply to the satisfaction of creditors' claims by means of foreclosure on the subject of encumbrance, which ensures the fulfillment of the obligations of the business entity - a party to the general agreement in accordance with the requirements of Article 94 of this Code.
{Part five of Article 41 is supplemented with a new paragraph in accordance with Law No. 738-IX of June 19, 2020 }
The moratorium does not apply to the satisfaction of creditors' claims for the period of the debt repayment procedure regarding the amounts of debt of settlement participants subject to repayment under the conditions specified by the Law of Ukraine "On Measures Aimed at Repayment of Debt Formed on the Wholesale Electricity Market".
{Part five of Article 41 is supplemented with a new paragraph in accordance with Law No. 3291-IX of 07/28/2023 }
Enforcement of the debtor's property for claims not subject to the moratorium shall be carried out exclusively by decision of the commercial court in whose proceedings the debtor's bankruptcy case is pending, except for the cases provided for in Part Eight of this Article and Article 94 of this Code.
{Paragraph of part five of Article 41 as amended by Laws No. 738-IX of June 19, 2020 , No. 3985-IX of September 19, 2024 }
6. During the property disposal procedure, the debtor has the right to satisfy only those claims of creditors that are not subject to the moratorium in accordance with Part Five of this Article.
The satisfaction of secured claims of creditors at the expense of the debtor's property, which is the subject of security, shall be carried out only within the framework of bankruptcy proceedings, unless otherwise provided for by this Code.
{Part six of Article 41 as amended by Law No. 3985-IX of September 19, 2024 }
7. The debtor, the owner of the debtor's property (the body authorized to manage the property), the owner of the debtor's corporate rights, and in cases provided for by law, a third person, during the bankruptcy proceedings, in order to repay the creditors' claims and close the proceedings in the case, have the right to satisfy all the claims of the bankruptcy creditors in accordance with the register of creditors' claims, except for the penalty (fine, penalty).
To simultaneously repay all creditors' claims, the arbitration manager is obliged to provide the person who has expressed an intention to repay the creditors' claims with a register of creditors' claims.
If all creditors' claims are satisfied, except for the penalty (fine, penalty), the commercial court shall close the bankruptcy proceedings by a ruling. The claims for the penalty (fine, penalty) shall be deemed to have been settled, as the commercial court shall state in the ruling.
8. The moratorium shall cease to apply from the date of closure of the bankruptcy proceedings.
Regarding the satisfaction of secured creditors' claims at the expense of the debtor's property, which is the subject of security, the moratorium is automatically terminated and the secured creditor is granted the right to enforce the security, including outside the bankruptcy case, after the expiration of 170 calendar days from the date of initiation of the property disposal procedure, if the commercial court has not issued a resolution declaring the debtor bankrupt or a resolution initiating the rehabilitation procedure, or a resolution extending the moratorium on the satisfaction of secured creditors' claims during this time.
During the debtor's rehabilitation procedure, at the request of a secured creditor, the commercial court may decide to terminate the moratorium on the debtor's property that is the subject of security if such property is not involved in the implementation of the debtor's rehabilitation plan or is a quickly wearing item or a quickly perishable good.
The commercial court, upon the request of the administrator of the property, creditors or the debtor, may extend the moratorium on the satisfaction of secured creditors' claims before the end of the moratorium period provided for in this part, if: a rehabilitation plan is being developed and has prospects of being approved by the court and the property that is the subject of the security may be used in the implementation of the rehabilitation plan or such property is an integral part of the debtor's integral property complex; the value of the property that is the subject of the security significantly exceeds the amount of the secured creditor's claims; there are other grounds indicating that the sale of the property that is the subject of the security separately from the debtor's other property will result in a significant decrease in the value of the property that is not the subject of the security. The commercial court shall issue a ruling on the extension of the moratorium on the satisfaction of secured creditors' claims.
{Part eight of Article 41 as amended by Law No. 3985-IX of September 19, 2024 }
9. The legal consequences of the moratorium on the satisfaction of creditors' claims do not apply if the proceedings in the case are closed due to the fact that the commercial court has not identified signs of the debtor's insolvency.
10. The debtor's assets that are subject to tax lien may be released from tax lien by a commercial court, which shall be decided in a court session with the participation of the supervisory authority authorized in accordance with the Tax Code of Ukraine to take measures to ensure the repayment of tax debt and arrears in the payment of a single contribution for mandatory state social insurance within the limits of its powers.
Article 42. Invalidation of the debtor's transactions↑
1. The commercial court within the framework of bankruptcy proceedings, upon the application of the arbitration manager or creditor, filed in accordance with the procedure specified in Article 7 of this Code, may declare invalid transactions or refute property actions committed by the debtor after the opening of bankruptcy proceedings or within three years preceding the opening of bankruptcy proceedings, if they violated the rights of the debtor or creditors, on the following grounds:
{Paragraph one of part one of Article 42 as amended by Law No. 2971-IX of 03/20/2023 }
the debtor fulfilled the property obligations before the established deadline;
the debtor, prior to the opening of bankruptcy proceedings, assumed obligations, as a result of which he became insolvent or the fulfillment of his monetary obligations to other creditors became completely or partially impossible;
the debtor alienated or acquired property at prices lower or higher than market prices, respectively, provided that at the time of assuming the obligation or as a result of its performance, the debtor's property was (became) insufficient to satisfy the creditors' claims;
the debtor paid another person or accepted property in satisfaction of monetary claims on the day when the amount of creditors' claims against the debtor exceeded the value of the property;
{Paragraph five of part one of Article 42 as amended by Law No. 2971-IX of March 20, 2023 }
the debtor assumed collateral obligations to secure the fulfillment of monetary claims.
2. Transactions made by the debtor during the three years preceding the opening of bankruptcy proceedings may be declared invalid by the commercial court within the framework of bankruptcy proceedings upon the application of the arbitration manager or creditor also on the following grounds:
the debtor alienated property free of charge, assumed obligations without corresponding property actions by the other party, and waived his own property claims;
the debtor has entered into a contract with an interested party;
the debtor entered into a gift agreement.
3. In the event of the debtor's transactions being declared invalid on the grounds provided for in parts one or two of this article, the party to such a transaction shall be obliged to return to the debtor the property it received from the debtor, and if it is impossible to return the property in kind, to compensate for its value in cash at market prices that existed at the time of the transaction.
{Part Three of Article 42 as amended by Law No. 2971-IX of March 20, 2023 }
4. Based on the results of consideration of the application of the arbitration manager or creditor to declare the debtor's transaction invalid, the commercial court shall adopt a decision.
{Part Four of Article 42 as amended by Law No. 2971-IX of March 20, 2023 }
5. Persons who have committed, agreed upon transactions or committed property actions specified in parts one and two of this article shall bear subsidiary liability for the debtor's obligations within the amount of losses caused to the debtor by such property actions.
{Article 42 is supplemented by part five in accordance with Law No. 2971-IX of 20.03.2023 }
Article 43. Succession↑
1. In the event of the withdrawal or replacement of a creditor in a bankruptcy case, the commercial court, upon application by the successor or other participant(s) in the case, shall replace such party with its successor at any stage of the proceedings in the case.
2. All actions taken in the bankruptcy case before the successor enters the case are binding on him in the same way as they were binding on the person whom the successor replaced.
Section II. DISPOSITION OF THE DEBTOR'S PROPERTY↑
Article 44. Introduction of the procedure for disposing of the debtor's property↑
1. Property management refers to a system of measures to supervise and control the management and disposal of the debtor's property in order to ensure the preservation and effective use of the debtor's property assets, analyze its financial condition, and determine the next procedure (reorganization or liquidation).
The commercial court shall issue a ruling on the appointment of a property administrator.
2. The procedure for disposing of the debtor's property shall be introduced for a period of up to 170 calendar days.
3. The property manager is obliged to:
consider applications of creditors with monetary claims against the debtor, received in accordance with the procedure established by this Code;
maintain a register of creditors' claims;
notify creditors about the results of the consideration of their claims;
take measures to protect the debtor's property;
to conduct an analysis of the financial and economic condition, investment and other activities of the debtor and the debtor's position on the markets, to establish based on the results of its conduct the presence or absence of signs of fictitious bankruptcy, bringing to bankruptcy, concealment of persistent financial insolvency, commission of illegal actions in the event of bankruptcy;
{Paragraph six of part three of Article 44 as amended by the Law No. 3249-IX dated 13.07.2023 }
notify law enforcement agencies in the event of detection of signs of fictitious bankruptcy, bringing to bankruptcy, concealment of persistent financial insolvency, commission of illegal actions with the debtor's property;
{Paragraph seven of part three of Article 44 as amended by the Law No. 3249-IX dated 13.07.2023 }
to convene a meeting and a creditors' committee and organize their meetings;
submit data (information) necessary for maintaining the Unified Register of debtors in respect of whom bankruptcy (insolvency) proceedings have been opened, in accordance with the procedure established by the state body responsible for bankruptcy;
{Paragraph nine of part three of Article 44 as amended by Law No. 2971-IX of 03/20/2023 }
provide the commercial court and the creditors' committee with a report on its activities, as well as disclose information to creditors regarding the debtor's financial condition and the progress of the case;
no later than two months from the date of opening of bankruptcy proceedings, conduct an inventory of the debtor's property and determine its value;
if possible, develop a debtor rehabilitation plan and submit it to the creditors' meeting for consideration;
to exercise other powers provided for by this Code.
4. The property manager is responsible for his actions and inactions in accordance with the law.
5. During the property disposal procedure, the debtor's management bodies do not have the right to make decisions about:
reorganization (merger, acquisition, division, separation, transformation) and liquidation of the debtor;
creation of business partnerships or participation in other business partnerships;
establishment of branches and representative offices;
payment of dividends;
the debtor issues securities;
withdrawal from the membership of the debtor of a legal entity, acquisition of previously issued shares of the debtor from shareholders;
alienation or encumbrance of the debtor's real estate, including its transfer as collateral, contribution of the specified property to the authorized capital of another enterprise or business partnership;
granting loans (credits), providing suretyships, guarantees, as well as transferring the debtor's property into trust management.
6. The commercial court, upon application by the administrator of the property, shall cancel the arrests of the debtor's property or other restrictions on the disposal of his property if such arrests or restrictions impede the debtor's economic activities and the restoration of his solvency.
7. The head or management body of the debtor shall, solely in agreement with the administrator of the property, make decisions on:
participation of the debtor in unions, associations, unions, holding companies, industrial and financial groups or other associations of legal entities;
transfer of property for rent;
{Paragraph three of part seven of Article 44 as amended by Law No. 3249-IX of 13.07.2023 }
obtaining and granting loans (credits);
{Paragraph four of part seven of Article 44 as amended by Law No. 3249-IX of 13.07.2023 }
meeting the demands of current creditors.
{Part seven of Article 44 is supplemented with a new paragraph in accordance with Law No. 2971-IX of March 20, 2023 }
In the procedure for disposing of property, the debtor does not have the right, without the consent of the creditors' committee (creditors' meeting - until the creditors' committee is formed), to make significant transactions, the performance of which is not prohibited by this Code.
In the procedure for the disposal of property, the debtor is obliged to provide the property administrator with the opportunity to directly access information stored in databases (including electronic ones) used by the debtor's officials for accounting, tax and management accounting, as well as for the formation of accounting, statistical and tax reporting, and/or provide the property administrator with the opportunity to familiarize himself with such information in another way with the ability to print and/or copy documents necessary for the exercise of the powers of the property administrator, taking into account the requirements of part four of Article 10 of this Code.
{Part seven of Article 44 is supplemented by paragraph seven in accordance with Law No. 3249-IX of 13.07.2023 }
8. In the procedure for disposing of property, the debtor does not have the right to sell the debtor's significant assets without the consent of the creditors' committee (creditors' meeting - until the creditors' committee is elected).
9. The administrator of the property has the right to file a claim with the commercial court to declare transactions invalid, including those concluded by the debtor in violation of the procedure established by this Code, as well as claims to declare acts adopted in the procedure for the disposal of property to change the organizational and legal form of the debtor invalid.
10. The administrator of the property has no right to interfere in the operational and economic activities of the debtor, except in cases provided for by this Code.
11. The appointment of a property administrator is not a basis for terminating the powers of the manager or management body of the debtor.
{Part twelve of Article 44 was excluded on the basis of Law No. 3985-IX of September 19, 2024 }
{Part thirteen of Article 44 was excluded on the basis of Law No. 3985-IX of September 19, 2024 }
Article 45. Identification of creditors and persons who wish to participate in the debtor's rehabilitation↑
1. Bankruptcy creditors for claims that arose before the date of opening of bankruptcy proceedings are obliged to submit to the commercial court written statements with claims against the debtor, as well as documents confirming them, within 30 days from the date of official publication of the announcement of the opening of bankruptcy proceedings.
The administrator for the bond issue, acting as a bankruptcy creditor, shall submit an application with claims against the debtor, taking into account the requirements of Article 93-1 of this Code.
{Part one of Article 45 is supplemented with a new paragraph in accordance with Law No. 738-IX of June 19, 2020 }
The period for filing creditors' monetary claims against the debtor begins on the day of the official publication of the announcement of the opening of bankruptcy proceedings.
2. The creditor, upon whose application the proceedings in the case were initiated, has the right to file additional monetary claims against the debtor within the time limit established by part one of this article.
Secured creditors are required to file a statement with monetary claims against the debtor during bankruptcy proceedings for claims that are unsecured or subject to waiver of security.
Secured creditors may waive the security in whole or in part. If the value of the collateral is insufficient to cover the entire claim, the creditor shall be considered secured only to the extent of the value of the collateral. The remaining claims shall be considered unsecured.
The composition and amount of creditors' monetary claims shall be determined in the national currency of Ukraine. If the debtor's obligations are determined in a foreign currency, the composition and amount of creditors' monetary claims shall be determined in the national currency at the exchange rate established by the National Bank of Ukraine on the date of the creditor's submission of the application with monetary claims to the debtor.
Property claims of creditors against the debtor must be expressed in monetary units and filed with the commercial court in accordance with the procedure established by this article.
Creditors with claims for payment of wages, royalties, alimony, as well as claims for compensation for damage caused to the life and health of citizens, payment of insurance premiums for mandatory state pension and other social insurance have the right to submit written statements to the commercial court with claims against the debtor, as well as documents confirming them.
{Paragraph six of part two of Article 45 as amended by Law No. 2971-IX of March 20, 2023 }
Creditors send copies of the relevant applications and the documents attached to them to the debtor and the administrator of the property.
3. The creditor's application must contain:
name of the commercial court to which the application is submitted;
name of the debtor, its location, identification code of the legal entity or registration number of the taxpayer's registration card, or series and number of the passport (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport);
the name or business name of the creditor, its location or place of residence, the identification code of the legal entity or the registration number of the taxpayer's registration card, or the series and number of the passport (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have notified the relevant regulatory authority about this and have a mark in their passport);
the amount of the creditor's claims against the debtor with a separate indication of the amount of the penalty (fine, penalty);
a statement of the circumstances confirming the claims against the debtor and their justification;
information about the existence of the debtor's collateral, which serves as security for claims;
information about the creditor's interest in the debtor;
{Part three of Article 45 is supplemented with a new paragraph in accordance with Law No. 3985-IX of September 19, 2024 }
list of documents attached to the application.
The application must be accompanied by evidence of payment of the court fee, evidence of sending a copy of the application to the debtor and the administrator of the property, as well as documents confirming monetary claims against the debtor.
The application is signed by the creditor or his authorized representative.
The commercial court is obliged to accept the creditor's application submitted in compliance with the requirements of this Code and the Commercial Procedure Code of Ukraine , which is decided by a ruling indicating the date of the previous court session.
4. For creditors whose claims are filed after the expiration of the period established for their filing, all actions taken in the legal proceedings are binding in the same way as they are binding for creditors whose claims were filed within the established period.
Creditors' claims filed after the expiration of the period established for their submission shall be satisfied in the order of priority established by this Code.
Creditors whose claims are filed after the expiration of the period specified in part one of this article are eligible for competition, but do not have the right to a decisive vote at the creditors' meeting and committee.
If the creditor has declared claims after settlements with other creditors have been made, the funds paid to such creditors are not refundable.
5. The administrator of the property, no later than 10 days after the expiration of the period established by part one of this article, taking into account the results of the consideration of the creditors' claims by the debtor, shall fully or partially recognize them or reject them, substantiating the grounds for recognition or rejection, of which he shall notify the applicants and the commercial court in writing, and shall also submit to the court a written report on the notifications sent to all creditors of the debtor about the results of the consideration of monetary claims and their receipt by the creditors, together with copies of notifications of delivery of the postal item and descriptions of the attachments to the postal item or other documents confirming the sending of the notification to the creditors.
6. A creditor has the right to receive information from the administrator of the property regarding the claims of other creditors. Such a creditor may file an objection to the recognition of the claims of other creditors with the administrator of the property, the debtor and the court.
Applications with claims of bankruptcy creditors or secured creditors submitted within the time limit specified in part one of this article shall be considered by the commercial court in a preliminary court session.
Creditors' claims filed after the expiration of the period established for their submission shall be considered by the commercial court in the order of their receipt in the court session held after the previous session of the commercial court.
Based on the results of considering the said applications, the commercial court issues a ruling recognizing or rejecting (in whole or in part) the claims of such creditors.
The decision of the commercial court shall enter into force immediately after its announcement, may be appealed in accordance with the procedure established by this Code, and shall serve as a basis for entering information about such creditors into the register of creditors' claims.
{Paragraph five of part six of Article 45 as amended by Law No. 2971-IX of March 20, 2023 }
7. Creditors' applications for claims for payment of wages, royalties, alimony, as well as claims for compensation for damage caused to the life and health of citizens, to which the debtor objects, shall be considered in accordance with this Code.
8. The administrator of the property is obliged to separately notify the commercial court of the claims of creditors secured by the pledge of the debtor's property, according to their applications, and in the absence of such applications - according to the debtor's accounting data, and also to separately enter into the register information about the debtor's property, which is the subject of the pledge, according to the relevant state register.
The administrator of the property is obliged to separately notify the commercial court of claims for payment of wages, royalties, alimony, as well as claims for compensation for damage caused to the life and health of citizens, according to the statements of such creditors and/or the debtor's accounting data.
Prior to the declaration of bankruptcy of the debtor, the debtor's disputes with creditors who have current claims against the debtor are resolved within the bankruptcy case by considering them in claim proceedings by the commercial court.
9. Individuals and/or legal entities wishing to participate in the debtor's rehabilitation (hereinafter referred to as investors) may submit to the property manager an application for participation in the debtor's rehabilitation and their proposals for the debtor's rehabilitation (rehabilitation plan, etc.).
10. In the property disposal procedure, the property administrator, with the participation of the debtor, develops a plan for the debtor's rehabilitation in accordance with the requirements of this Code and submits it for consideration by the creditors' meeting.
Article 46. Verification of compliance of the bankruptcy creditor's application with the requirements of this Code↑
1. The commercial court shall, no later than five days from the date of receipt of the bankruptcy creditor's application, verify its compliance with the requirements of this Code.
If the bankruptcy creditor's application is filed without complying with the requirements of this Code, the commercial court shall issue a ruling to leave the application without action. In the ruling to leave the application without action, the court shall notify the applicant of the deficiencies in the application and the period within which he is obliged to eliminate them, which may not exceed five days from the date of delivery of the ruling to leave the application without action.
{Paragraph two of part one of Article 46 as amended by Law No. 2971-IX of 20.03.2023 }
2. If the bankruptcy creditor has eliminated the deficiencies in the application within the time limit established by the court, it shall be deemed to have been filed on the day of its initial submission to the court. Otherwise, the commercial court shall issue a ruling to return the application.
3. Return of the application on the grounds provided for in this article shall not prevent a second appeal to the court in the same case, if the violation has been eliminated.
{Part Three of Article 46 as amended by Law No. 2971-IX of March 20, 2023 }
Article 47. Preliminary hearing of the commercial court↑
1. A preliminary meeting of the commercial court shall be held no later than 70 calendar days, and in the case of a large number of creditors - no later than three months from the date of the preparatory meeting of the court. The parties, as well as other participants in the bankruptcy proceedings recognized as such in accordance with this Code, shall be notified of the preliminary meeting of the court.
2. In the preliminary hearing, the commercial court shall consider all claims of creditors received within the period provided for in Part One of Article 45 of this Code, including those to which there were objections from the debtor or the administrator of the property.
Based on the results of considering the claims of an individual creditor, the commercial court issues a ruling on their recognition or rejection (in whole or in part), which cannot be appealed separately from the commercial court ruling issued based on the results of the previous meeting.
{Part two of Article 47 is supplemented with a new paragraph in accordance with Law No. 2971-IX of March 20, 2023 }
If necessary, the commercial court may adjourn the preliminary hearing.
Based on the results of the preliminary hearing, the commercial court issues a ruling stating:
the amount, priority of satisfaction of each recognized claim and a list of all creditors' claims recognized by the court, which are entered by the administrator of the property into the register of creditors' claims, including the claims of creditors who are interested in the debtor;
{Paragraph five of part two of Article 47 as amended by Law No. 3985-IX of September 19, 2024 }
the amount and list of creditors' claims not recognized by the court;
date of the creditors' meeting and creditors' committee;
the date of the final court session at which a resolution on the rehabilitation of the debtor or a resolution on declaring the debtor bankrupt and opening liquidation proceedings, or a resolution on closing the bankruptcy proceedings, or a resolution on extending the term of the property disposal procedure and postponing the final court session, which must be held within the terms established by part two of Article 44 of this Code, will be issued.
Based on the results of the previous meeting, the administrator of the property enters into the register of creditors' claims information about each creditor, the amount of his claims for monetary obligations, the presence of the right to a decisive vote in the representative bodies of creditors, and the priority of satisfaction of each claim.
The penalty (fine, penalty) is taken into account in the register of creditors' claims separately from the main obligations in the sixth place.
Repayment of a penalty (fine, penalty) in a bankruptcy case is possible only in the liquidation procedure.
The resolution of the previous meeting is the basis for determining the number of votes belonging to each bankruptcy creditor when making a decision at the meeting (committee) of creditors.
{Paragraph twelve of part two of Article 47 as amended by Law No. 3985-IX of September 19, 2024 }
Competitive creditors interested in the debtor do not have the right to a casting vote at the creditors' meeting (committee).
{Part two of Article 47 is supplemented by paragraph thirteen in accordance with Law No. 3985-IX of September 19, 2024 }
3. The decision of the commercial court, issued based on the results of the previous meeting, may be appealed by a party to the bankruptcy case only in respect of specific claims of creditors.
Article 48. Creditors' Meeting and Creditors' Committee↑
1. Within 10 days from the date of the decision based on the results of the previous meeting of the commercial court, the administrator of the property shall notify the creditors in writing in accordance with the register of creditors' claims, the authorized person of the debtor's employees, and the authorized person of the debtor's founders (participants, shareholders) of the place and time of the creditors' meeting and shall organize its holding.
Participants in the meeting of creditors of the debtor are bankruptcy creditors with the right to a decisive vote, whose claims have been recognized by the commercial court based on the results of the previous meeting.
{Paragraph two of part one of Article 48 as amended by Law No. 3985-IX of 19.09.2024 }
The following may participate in the meeting of creditors of the debtor with the right to an advisory vote:
creditors whose claims are secured by a pledge of the debtor's property;
creditors with claims for payment of wages, royalties, alimony, as well as compensation for damage caused to the life and health of citizens;
bankruptcy creditors whose claims are filed after the expiration of the deadline established for their submission;
bankruptcy creditors interested in the debtor;
{Part one of Article 48 is supplemented with a new paragraph in accordance with Law No. 3985-IX of September 19, 2024 }
a representative of the debtor's employees;
authorized person of the founders (participants, shareholders) of the debtor;
a representative of the body authorized to manage state property;
arbitration manager.
In the event of the application of special economic and other restrictive measures (sanctions) to a creditor or to an interested person in relation to the creditor, which provide for the blocking of assets, such creditor, from the moment of application and for the period of application of the sanctions, has the right to participate in the creditors' meeting only with the right to an advisory vote.
{Part one of Article 48 is supplemented with a paragraph in accordance with the Law No. 3249-IX dated 13.07.2023 }
2. The first meeting of creditors shall be considered valid if creditors holding not less than two-thirds of the votes are present. If the first meeting was not held due to the absence of creditors holding the required number of votes, a second meeting shall be held within two weeks, which shall be considered valid if creditors holding more than half of the votes are present. If this meeting was also not held due to the absence of creditors holding the required number of votes, a subsequent meeting shall be held within two weeks, which shall be considered valid if creditors holding more than a quarter of the votes are present.
The number of creditors' votes at the meeting shall be determined in accordance with part four of this article.
3. Meetings of creditors in bankruptcy proceedings shall be convened by the arbitration manager on his initiative, on the initiative of the creditors' committee or other creditors, the amount of whose claims constitutes not less than one third of all claims entered in the register of creditors' claims, or on the initiative of one third of the number of votes of creditors.
Creditor meetings shall be convened by the arbitration manager at the request of the creditors' committee or individual creditors and shall be held within two weeks from the date of receipt of a written request for their convening.
If the arbitration manager does not convene a creditors' meeting, the creditors' committee or other creditors who initiate the convening of a creditors' meeting have the right to convene a creditors' meeting themselves.
The creditors' meeting shall be held at the debtor's location. The creditors' meeting shall have the right to determine another location for the meeting.
Creditors' meetings may be held via video conference. If a participant in a creditors' meeting does not have an electronic digital signature, the identity of such participant shall be confirmed in accordance with the procedure established by the Law of Ukraine "On the Unified State Demographic Register and Documents Confirming Citizenship of Ukraine, Identifying a Person or His Special Status". The video recording of the video conference shall be a mandatory annex to the minutes of the creditors' meeting. The minutes of the creditors' meeting shall be signed by the arbitration manager, and in the event of a creditors' meeting without the participation of the arbitration manager - by the creditor elected as the chairman of the creditors' meeting.
{Part three of Article 48 is supplemented by paragraph five in accordance with Law No. 3985-IX of September 19, 2024 }
Creditors' meetings may be held by means of a survey. The initiator of the survey sends all participants of the creditors' meeting a request with a draft decision on the proposed issue(s). Such a request shall specify the address to which the survey participants must send their response and the deadline for providing the response. Requests shall be sent to the e-mail addresses of the participants of the creditors' meeting specified in the applications with monetary claims against the debtor, or to the officially notified address. If the survey participant does not have an e-mail address, the request shall be sent by post. In this case, the deadline for conducting the survey shall take into account the deadlines for receipt of postal correspondence. In case of agreement with the proposed decision, the survey participant shall sign the draft decision and send it to the initiator within 15 days from the date of receipt of the request. The survey participant's consent to the adopted decision shall be unconditional. The survey participant's decision, sent together with documents confirming his/her authority, to the e-mail address of the initiator of the survey, shall be signed using the electronic digital signature of an authorized person. The decision of a survey participant sent by mail shall be signed personally by the survey participant or his representative with the provision of documents confirming the representative's authority. Responses received after the expiration of the established period, or those whose content does not allow establishing the expression of the will of the survey participant on the raised issue, shall not be taken into account when calculating the results of the vote on such issue. The initiator of the survey shall be obliged to state the decision made in writing, attach copies of the responses of all survey participants to it and send it to all participants of the creditors' meeting in accordance with the procedure established for sending requests, within 10 days from the date of expiration of the period for accepting responses from the participants of the creditors' meeting. The date of adoption of the decision shall be the last day of the period during which the survey participants were to send their responses to the initiator of the survey.
{Part three of Article 48 is supplemented by paragraph six in accordance with Law No. 3985-IX of September 19, 2024 }
4. Contested creditors with the right to a decisive vote have at the creditors' meeting the number of votes equal to the sum of creditors' claims included in the register of creditors' claims based on the results of the previous meeting of the commercial court.
{Paragraph one of part four of Article 48 as amended by Law No. 3985-IX of September 19, 2024 }
When determining the number of votes of creditors with the right to a decisive vote, the amounts of penalties (fines, penalties), other financial sanctions, moral damages, court fees in a bankruptcy case, declared or paid by creditors in bankruptcy proceedings, are not taken into account.
5. The competence of the creditors' meeting includes making decisions on:
1) determining the quantitative composition and election of members of the creditors' committee;
2) early termination of the powers of the creditors' committee or its individual members;
3) approval of the debtor's rehabilitation plan and approval of amendments to it;
4) application to the commercial court with a request to initiate the next procedure in the bankruptcy case;
{Clause 5 of Part Five of Article 48 was excluded on the basis of Law No. 3249-IX of July 13, 2023 }
6) other issues provided for by this Code, including those within the competence of the creditors' committee.
6. For the duration of the bankruptcy proceedings, the creditors' meeting shall elect a creditors' committee consisting of no more than seven people.
Elections of the creditors' committee shall be held by open vote by a majority of votes of those present at the creditors' meeting, determined in accordance with part four of this article.
A creditor who holds 25 percent or more of the votes is automatically included in the creditors' committee.
If the total number of creditors does not exceed seven people, all creditors are automatically included in the creditors' committee.
During bankruptcy proceedings, the interests of all creditors are represented by a creditors' committee established in accordance with this Code.
In the event of bankruptcy proceedings against an insurer or credit union, the National Bank of Ukraine is required to be included in the creditors' committee with the right to a casting vote.
{Part six of Article 48 is supplemented by paragraph six in accordance with Law No. 3254-IX of 14.07.2023 }
7. The protocol decision of the creditors' meeting on the formation and composition of the creditors' committee shall be submitted to the commercial court.
8. The competence of the creditors' committee includes making decisions on:
1) election of the committee chairman;
2) convening a creditors' meeting;
3) an application to the commercial court with a request to declare the debtor's transactions (contracts) invalid at any stage of the bankruptcy procedure;
3 - 1 ) determination of the candidacy of an arbitration manager for appointment in a bankruptcy case;
{Part eight of Article 48 is supplemented by paragraph 3 - 1 in accordance with the Law No. 3249-IX dated 13.07.2023 }
4) application to the commercial court with a request for the appointment of an arbitration manager, termination of the powers of an arbitration manager and the appointment of another arbitration manager;
5) granting consent to the sale of the debtor's property (except for property that is the subject of security) and approving the terms of the sale of the debtor's property (except for property that is the subject of security) in the rehabilitation procedure in accordance with the rehabilitation plan or in the liquidation procedure of the bankrupt;
6) submitting proposals to the commercial court regarding the extension or reduction of the term of procedures for the disposal of the debtor's property or the debtor's rehabilitation;
7) other issues provided for by this Code.
The arbitration manager, a representative of the debtor's employees, an authorized person of the debtor's founders (participants, shareholders), a secured creditor, if necessary, a representative of the body authorized to manage state property, and a representative of a local government body have the right to participate in the work of the committee with the right to an advisory vote.
In the event of the application of special economic and other restrictive measures (sanctions) to a creditor or to an interested person in relation to the creditor, which provide for the blocking of assets, such creditor, from the moment of application and for the period of application of the sanctions, has the right to participate in the work of the creditors' committee only with the right to an advisory vote.
{Part eight of Article 48 is supplemented by paragraph eleven in accordance with the Law No. 3249-IX dated 13.07.2023 }
9. The decision of the creditors' meeting (committee) shall be deemed adopted if the majority of the votes of the creditors present at the creditors' meeting (committee) have voted in favor of it.
An integral part of the minutes of the creditors' meeting (committee) is the register of creditors as of the date of the creditors' meeting (committee).
{Part nine of Article 48 is supplemented with a new paragraph in accordance with Law No. 3985-IX of September 19, 2024 }
The decision of the creditors' meeting to apply to the commercial court with a petition for the introduction of the rehabilitation procedure and the appointment of a rehabilitation manager shall be adopted by the creditors' meeting in accordance with the procedure specified in Article 52 of this Code for the approval of the rehabilitation plan. In this case, the votes of creditors who, in accordance with Article 52 of this Code, do not have the right to vote upon the approval of the rehabilitation plan or amendments thereto shall not be taken into account when determining the number of creditors' votes.
{Part nine of Article 48 is supplemented with a paragraph in accordance with Law No. 2971-IX of March 20, 2023 }
The National Bank of Ukraine has the right to impose a ban (veto) on the decisions of the creditors' committee if the implementation of such decisions threatens the legitimate interests of the insurer or credit union, their creditors.
{Part nine of Article 48 is supplemented with a new paragraph in accordance with Law No. 3254-IX of 14.07.2023 }
10. Holding a creditors' meeting in connection with a change in the register of creditors' claims or the election (re-election) of a creditors' committee in a changed or new composition cannot be an independent basis for changing or revising decisions previously made by the meeting or creditors' committee.
11. A meeting of the creditors' committee shall be convened and held in accordance with the rules established for creditors' meetings.
Article 49. Completion of the property disposal procedure↑
1. At the final court session in the procedure for disposing of the debtor's property, the transition to the next court procedure (reorganization, liquidation procedure) is made or the proceedings in the case are closed.
2. Before the end of the procedure for disposing of the debtor's property, the creditors' meeting shall adopt one of the following decisions:
approve the rehabilitation plan and submit a petition to the commercial court to initiate the rehabilitation procedure and approve the rehabilitation plan;
submit a petition to the commercial court to declare the debtor bankrupt and initiate liquidation proceedings.
In the event of circumstances that prevent the creditors' meeting from adopting one of these decisions within the established time limits, the creditors' meeting may decide to apply to the commercial court with a request to extend the term of the property disposal procedure within the time limits specified by this Code.
3. At the final hearing, the commercial court shall adopt one of the following court decisions:
a resolution to extend the period of the property disposal procedure within the time limits specified by this Code;
a resolution on the introduction of the rehabilitation procedure and approval of the rehabilitation plan in the event of the approval of the debtor's rehabilitation plan by the creditors' meeting and its approval by secured creditors in accordance with the procedure established by this Code;
a resolution declaring the debtor bankrupt and initiating liquidation proceedings;
a decision to close the bankruptcy proceedings.
4. If the creditors' meeting does not adopt any of the decisions provided for in this article within the term of the property disposal procedure, the commercial court, if there are signs of bankruptcy, shall, within five days after the end of the procedure for the disposal of the debtor's property, adopt a resolution declaring the debtor bankrupt and initiating liquidation proceedings.
5. When approving a reorganization plan, the commercial court shall verify whether the procedure for its approval has been followed.
6. From the date of recognition of the debtor as bankrupt by the commercial court and the opening of liquidation proceedings or the introduction of a rehabilitation procedure, the procedure for disposing of property and the powers of the property administrator shall be terminated.
Chapter III. DEBTOR'S REHABILITATION↑
Article 50. Introduction of the debtor's rehabilitation procedure↑
1. The Commercial Court shall approve the approved rehabilitation plan of the debtor and issue a ruling on the initiation of the rehabilitation procedure.
{Paragraph two of part one of Article 50 was excluded on the basis of Law No. 3985-IX of 19.09.2024 }
2. The debtor's rehabilitation manager shall be appointed by the commercial court in accordance with the procedure established by this Code, from among the arbitration managers.
3. The decision of the commercial court on the introduction of the rehabilitation procedure and the appointment of a rehabilitation manager shall enter into force on the date of its adoption.
4. From the moment of the decision to initiate the rehabilitation procedure:
members of the executive body (head) of the debtor are dismissed from their positions in accordance with the procedure established by law;
management of the debtor passes to the rehabilitation manager;
The powers of the management bodies of the debtor - a legal entity - regarding the management and disposal of the debtor's property are suspended, the powers of the management bodies are transferred to the rehabilitation manager, except for the powers provided for in the rehabilitation plan.
The debtor's management bodies are obliged, within 15 days from the date of the decision to introduce the rehabilitation procedure and appoint a rehabilitation manager, to transfer to the rehabilitation manager the debtor's accounting and other documentation, its seals, stamps, material and other valuables.
Arrest of the debtor's property and other restrictions on the debtor's actions regarding the disposal of his property may be imposed only within the framework of the rehabilitation procedure, provided that they do not impede the implementation of the rehabilitation plan and do not conflict with the interests of bankruptcy creditors. Arrest of funds held in escrow bank accounts opened by the debtor in accordance with the procedure established by law is not allowed.
It is not allowed to impose an arrest on funds received (held) by a non-bank payment service provider in a current account opened by a bank for a non-bank payment service provider to perform payment transactions, under the obligations of such non-bank payment service provider to any creditor.
{Part four of Article 50 is supplemented with a new paragraph in accordance with Law No. 2888-IX of 12.01.2023 }
The commercial court, upon the application of the rehabilitation manager, shall lift the seizure of the debtor's property or other restrictions on the disposal of his property, if such seizure or restrictions impede the implementation of the rehabilitation plan, the debtor's economic activities, and the restoration of his solvency.
The official publication of the notice on the introduction of the rehabilitation procedure is carried out on the official web portal of the judiciary of Ukraine.
5. The rehabilitation manager has the right:
cases provided for by this Code and the Commercial Procedural Code of Ukraine ;
dispose of the debtor's property in accordance with the rehabilitation plan and taking into account the restrictions established by law;
to conclude civil, labor and other legal transactions (contracts) on behalf of the debtor;
to file applications for the recognition of transactions (contracts) concluded by the debtor as invalid.
6. The remediation manager is obliged to:
to take over the debtor's property;
open a special account for rehabilitation and settlements with creditors;
ensure that the debtor maintains accounting records and statistical reports and financial statements;
to take measures to collect receivables in favor of the debtor, as well as to collect debts from persons who, in accordance with the law or contract, bear subsidiary or joint liability with the debtor;
consider the claims of bankruptcy creditors;
to declare objections in accordance with the established procedure regarding the claims of bankruptcy creditors against the debtor;
notify the body authorized to manage state property of its appointment, completion of the rehabilitation plan, and release from duties within ten days from the date of the relevant decision by the commercial court;
notify the body authorized to manage state property about the implementation of the rehabilitation plan for the debtor - a state-owned enterprise or a business company, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state;
{Paragraph nine of part six of Article 50 as amended by Law No. 2971-IX of March 20, 2023 }
provide the commercial court, upon its request, with information on the implementation of the rehabilitation plan;
to act as a representative of the party (owner) in the collective agreement for the period of rehabilitation;
report quarterly to the creditors' committee and the court on the implementation of the reorganization plan;
exercise other powers provided for by law.
7. Approval of the report of the rehabilitation manager or early termination of the rehabilitation procedure entails the termination of the powers of the arbitration manager as a rehabilitation manager, as indicated in the relevant court ruling, unless otherwise established by this Code.
In the event of the closure of bankruptcy proceedings, the rehabilitation manager shall, within five days from the date of the adoption of the relevant decision by the commercial court, notify the body or official of the body within whose competence the appointment of the head (management bodies) of the debtor falls, if necessary, convene a general meeting or session of the relevant body and continue to exercise the powers of the head (management bodies) of the debtor until the appointment of the head (management bodies) in accordance with the established procedure.
8. The owner of the debtor's property (the body authorized to manage the property) may not limit the powers of the rehabilitation manager to dispose of the debtor's property.
Significant transactions and transactions in which there is an interest are concluded by the rehabilitation manager with the consent of the creditors' committee, unless otherwise provided for by this Code or the debtor's rehabilitation plan.
9. The rehabilitation manager has the right, within three months from the date of making the decision on rehabilitation, to refuse the debtor's transactions (except for transactions that are measures of the rehabilitation plan and transactions provided for in Article 37 of the Law of Ukraine "On Capital Markets and Organized Commodity Markets"), committed before the opening of bankruptcy proceedings, not performed in full or in part, if:
{Paragraph one of part nine of Article 50 as amended by Law No. 738-IX of June 19, 2020 }
the performance of the transaction causes losses to the debtor;
the transaction is long-term (more than one year) or designed to obtain positive results for the debtor in the long term, except for cases of production with a technological cycle that exceeds the debtor's rehabilitation period;
the performance of the transaction creates conditions that prevent the restoration of the debtor's solvency.
A party to a transaction in respect of which a decision has been made by the rehabilitation manager to refuse to perform it has the right, within thirty days from the date of making such a decision, to demand compensation for losses incurred due to the refusal to perform the contract in accordance with the established procedure in the bankruptcy proceedings.
10. In the event of a violation by the parties of the terms of transactions concluded in accordance with the reorganization plan, during the reorganization procedure, the protection of the violated right that arose due to the reorganization procedure shall be carried out within the framework of the bankruptcy proceedings.
11. The debtor's rehabilitation procedure is terminated early in the event of failure to comply with the terms of the rehabilitation plan and/or in the event of failure to meet the debtor's current obligations, in connection with which the commercial court declares the debtor bankrupt and opens liquidation proceedings.
Article 51. Debtor's rehabilitation plan↑
1. The reorganization plan must specify the amount of claims of each class of creditors that would be satisfied in the event of the introduction of the debtor's liquidation procedure.
The rehabilitation plan may be amended in accordance with the procedure established for its approval.
The rehabilitation plan must contain measures to restore the debtor's solvency.
The rehabilitation plan must provide for a period within which the debtor's solvency will be restored. Solvency is considered restored if the creditors' claims are settled in accordance with the register of creditors' claims.
The rehabilitation plan must necessarily provide for the repayment of the debtor's salary arrears.
2. Measures to restore the debtor's solvency contained in the rehabilitation plan may include:
enterprise restructuring;
re-profiling of production;
closure of unprofitable production facilities;
deferral, installment or forgiveness of debt or part thereof;
performance of the debtor's obligation by third parties;
satisfaction of creditors' claims in another manner that does not contradict this Code;
liquidation of receivables;
restructuring of the debtor's assets in accordance with the requirements of this Code;
sale of part of the debtor's property;
performance of the debtor's obligations by the debtor's owner and his liability for failure to fulfill the obligations assumed;
alienation of property and repayment of creditors' claims by substitution of assets;
dismissal of the debtor's employees who cannot be involved in the implementation of the rehabilitation plan;
obtaining a loan to pay severance pay to the debtor's employees who are laid off in accordance with the reorganization plan, which is reimbursed in accordance with the requirements of this Code, out of turn, through the sale of the debtor's property;
obtaining loans and credits, purchasing goods on credit;
other measures to restore the debtor's solvency.
3. Restructuring of an enterprise means the implementation of organizational, economic, financial, legal, and technical measures aimed at reorganizing an enterprise, in particular by dividing it with the transfer of debt obligations to a legal entity that is not subject to rehabilitation, changing the form of ownership, management, and organizational and legal form, which will contribute to the financial recovery of the enterprise, increasing production efficiency, increasing the volume of competitive products, and fully or partially satisfying the claims of creditors.
4. If the rehabilitation plan provides for the dismissal of employees whose work cannot be used during its implementation, the rehabilitation manager must submit relevant information to the primary trade union organization prior to the intended dismissal, and also consult with the trade unions on taking measures to prevent the dismissal, reduce the number of dismissed employees to a minimum, or mitigate the consequences of the dismissal. In such a case, the severance pay is paid at the expense of the debtor or from the proceeds of the sale of the debtor's property, or from a loan obtained for this purpose.
If the debtor carries out activities related to state secrets, the rehabilitation plan must contain measures to ensure the protection of state secrets.
If the debtor is the balance sheet holder of state property that was not included in the authorized capital of a business company in the process of privatization (corporatization), such property is not subject to alienation in the rehabilitation procedure.
5. The debtor's rehabilitation plan must provide for the repayment of creditors' claims taking into account the priority established by this Code, unless the creditors themselves have approved a decision to worsen the conditions of their class.
6. The rehabilitation plan of state-owned enterprises or business companies, in whose authorized capital more than 50 percent of the shares (shares) belong to the state, must be previously agreed with the body authorized to manage state property.
7. The reorganization plan does not affect the creditor's claims against third parties if the creditor with such claims voted against the approval of the reorganization plan. The court's approval of the reorganization plan in respect of the original obligation does not terminate the additional obligations related to it in accordance with Article 604 of the Civil Code of Ukraine if the pledgee voted against such plan.
Article 52. Consideration of the reorganization plan by creditors↑
1. For the purpose of making a decision on the approval or rejection of the reorganization plan, all competitive creditors shall be divided into classes. Creditors included in each queue shall form a separate class of creditors. A creditor whose claims are subject to inclusion in two or more queues shall be subject to inclusion in two or more classes of creditors.
The claims of secured creditors form a separate class, which includes the claims in that part of them that is secured by a pledge of property. In the part of the claims not secured by a pledge, the claims of such creditors are subject to inclusion in the class of unsecured creditors.
If the reorganization plan provides for a change in the priority of the claims of secured creditors, the reorganization plan must be approved by each such creditor.
2. The reorganization plan may not provide for a different procedure for satisfying the claims of creditors included in the same class.
3. The decision to approve or reject the rehabilitation plan is made by each class separately by voting.
The class of creditors whose size and procedure for satisfying their claims under the reorganization plan will not differ from that which would be applied in the event of the introduction of liquidation proceedings shall not participate in the vote on the approval of the reorganization plan.
If the reorganization plan provides for the installment or postponement or forgiveness (write-off) of debts for the payment of taxes, fees (mandatory payments) or part thereof, the reorganization plan is considered approved by the collection body in terms of satisfying claims for taxes, fees (mandatory payments) under the terms of the reorganization plan without the need for a vote by the collection body. In this case, the tax debt that arose in the period preceding the three years prior to the date of the meeting of creditors approving the reorganization plan is recognized as hopeless and written off, and the tax debt that arose later is installment (postponed) or written off under the terms of the reorganization plan, which must be no worse than the terms for satisfying the claims of creditors who voted for the approval of the reorganization plan, as well as the amount and procedure for satisfying the claims that would be applied in the event of the introduction of liquidation proceedings.
4. A reorganization plan shall be deemed approved by a class of unsecured creditors if more than half of the votes of the creditors included in the relevant class have been cast in favor of the reorganization plan, and if at least half of the creditors with the right to vote in the relevant class have voted in favor of the reorganization plan.
A reorganization plan is considered approved by the class of secured creditors if two-thirds of the votes of the creditors included in the class of secured creditors are cast in favor of the reorganization plan, and if at least half of the creditors with the right to vote in this class vote in favor of the reorganization plan.
Otherwise, the reorganization plan is deemed to be rejected by the relevant class of creditors.
5. The claims of creditors who are interested parties in relation to the debtor shall not be taken into account for the purposes of voting upon approval of the reorganization plan.
If the reorganization plan provides for the satisfaction of the claims of an individual creditor immediately after the approval of the reorganization plan, such claims shall not be taken into account for the purposes of voting upon the approval of the reorganization plan.
{Paragraph two of part five of Article 52 as amended by Law No. 3985-IX of September 19, 2024 }
The reorganization plan may contain a provision granting one or more secured creditors the right to enforce the pledged property after the reorganization plan is approved by the commercial court. In such a case, such secured creditors (to the extent of their claims secured by the pledge) shall not participate in the vote on the approval, amendment or rejection of the reorganization plan.
6. The reorganization plan and voting minutes of each class of creditors shall be submitted by the administrator of the property to the commercial court within one business day after the vote.
7. The Commercial Court shall issue a ruling approving the debtor's rehabilitation plan if:
the reorganization plan is approved by all classes of bankruptcy creditors, the amount and/or procedure for satisfying whose claims are changed by the reorganization plan compared to the conditions that would apply in the event of the introduction of liquidation proceedings;
the reorganization plan is approved by the class of secured creditors;
The amount of satisfied claims of creditors who voted against the approval of the reorganization plan will not be less in the reorganization procedure than the amount of claims that would have been satisfied in the event of the introduction of liquidation proceedings.
8. The Commercial Court shall issue a ruling refusing to approve the rehabilitation plan if the rehabilitation plan does not meet the requirements of the law.
The court's decision to refuse to approve the reorganization plan does not prevent the resubmission to the court of the reorganization plan approved by the creditors' meeting for its approval.
9. The commercial court shall adopt a resolution declaring the debtor bankrupt and initiating liquidation proceedings if the rehabilitation plan is not approved by the court within the time limit established by this Code.
Article 53. Increase in the debtor's authorized capital↑
1. In order to restore the debtor's solvency, the rehabilitation plan may provide for an increase in the debtor's authorized capital in the amount established by the rehabilitation plan.
The issue of shares and bonds of a joint-stock company - a debtor is carried out exclusively for the purpose of converting the company's obligations into securities in accordance with the procedure established by the National Securities and Stock Market Commission.
2. The procedure for increasing the authorized capital, the preemptive right to acquire a share (additional shares in the case of a private placement of shares), the distribution of shares, and the procedure for paying the value of the share are determined in the reorganization plan.
The decision of the commercial court on approval of the rehabilitation plan and the rehabilitation plan approved by the court are the basis for the subject of state registration to conduct state registration of changes in information about the debtor contained in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations.
The sale of shares of a joint-stock company in the event of a public offering of shares is carried out in accordance with the law.
3. In the event that the issue of additional shares of the debtor is recognized as not having taken place or as invalid, the funds received by the debtor from persons who purchased additional shares of the debtor shall be returned to such persons outside the order established by this Code.
Article 54. Sale in the rehabilitation procedure of the debtor's property as a single property complex↑
1. In order to restore the debtor's solvency and satisfy the creditors' claims, the rehabilitation plan may provide for the sale of all or part of the debtor's property, if it constitutes a single property complex or several single property complexes.
A change in the owner of all the debtor's property in the form of a single property complex in accordance with the rehabilitation plan is not a basis for reissuing documents and/or amending documents certifying the rights of such a legal entity to own, use, dispose of property, reissuing a license and other documents of a permitting nature, amending the lease agreement and/or reissuing it in respect of land and other property of the debtor. In such legal relations, the buyer of all the debtor's property in the form of a single property complex is the debtor's successor in title.
In such a case, the company has the right to continue to carry out certain actions related to the implementation of economic activity or types of economic activity on the basis of the relevant valid license or permit document previously issued to such company.
2. During the sale of the debtor's property as a single property complex, all employment agreements (contracts) concluded prior to the date of such sale shall continue to be valid, while the rights and obligations of the employer shall be transferred to the buyer of the debtor's property.
3. The amount received from the sale of the debtor's property as a single property complex shall be included in the debtor's property assets.
4. The sale of the debtor's property as a single property complex shall be carried out at auction in accordance with this Code.
5. If the amount received from the sale of the debtor's property in accordance with the reorganization plan is insufficient to satisfy the creditors' claims to the extent determined by the reorganization plan, the reorganization manager shall propose to the creditors to make amendments to the reorganization plan.
If the creditors' meeting does not approve the changes to the reorganization plan, the commercial court declares the debtor bankrupt and opens liquidation proceedings.
Article 55. Alienation in the procedure of rehabilitation of the debtor's property by means of asset replacement↑
1. In order to restore the debtor's solvency and satisfy the creditors' claims, the rehabilitation plan may provide for the alienation of all or part of the debtor's property, if it constitutes a single property complex or several single property complexes, by means of asset replacement.
A change in the owner of all the debtor's property in the form of a single property complex in accordance with the rehabilitation plan is not a basis for reissuing documents and/or amending documents certifying the rights of such a legal entity to own, use, dispose of property, reissuing a license and other documents of a permitting nature, amending the lease agreement and/or reissuing it in respect of land and other property of the debtor. In such legal relations, the buyer of all the debtor's property in the form of a single property complex is the debtor's successor in title.
In such a case, the company has the right to continue to carry out certain actions related to the implementation of economic activity or types of economic activity on the basis of the relevant valid license or permit document previously issued to such company.
2. The debtor's single property complex may be alienated by transferring it to a business company (except for a joint-stock company) formed by the debtor. Shares in the authorized capital of such a business company shall be included in the debtor's property (substitution of assets).
During the formation of a business partnership, the debtor's property assets (property and property rights) are transferred to it, including the assignment of claim rights, and debts under the claims of current creditors that are part of a single property complex are transferred to it.
The size of the authorized capital of a newly established business company is determined as the difference between the value of the property transferred to such a company and the size of the claims of current creditors.
3. During the alienation of the debtor's property as a single property complex by means of asset replacement, all employment contracts concluded prior to the date of such alienation shall continue to be valid. In this case, the rights and obligations of the employer shall be transferred to the newly established business entity.
4. In the event of alienation of part of the debtor's property and transfer of the corresponding (proportional) part of its current liabilities by means of asset replacement, employment contracts concluded with employees whose labor was used in production units whose property is subject to transfer to the newly established business company shall continue to be valid, and the rights and obligations of the employer shall be transferred to such company.
5. The alienation of shares in the authorized capital of a newly established business company shall be carried out at an auction in accordance with the procedure established by this Code.
If the initial price of a portion of the shares is sufficient to satisfy the claims of the debtor's creditors, a corresponding (smaller) portion of the shares due to the debtor may be put up for auction.
6. Until the formation of the management bodies of a newly established business company after the sale of shares in its authorized capital, the powers of the management bodies shall be exercised by the rehabilitation manager.
7. If the amount received from the sale of property in accordance with the reorganization plan is not sufficient to satisfy the claims of creditors to the extent determined by the reorganization plan, the reorganization manager shall propose to the creditors to make amendments to the reorganization plan.
If the creditors' meeting does not approve the changes to the reorganization plan, the commercial court declares the debtor bankrupt and opens liquidation proceedings.
Article 56. Sale of part of the debtor's property in the rehabilitation procedure↑
1. In order to restore the debtor's solvency and satisfy the creditors' claims, the rehabilitation plan may also provide for the sale of part of the debtor's property other than that specified in Articles 54 and 55 of this Code.
Only the debtor's property specified in the duly approved reorganization plan is subject to sale in the reorganization procedure.
Measures to secure creditors' claims regarding the part of the debtor's property subject to sale under the reorganization plan shall be canceled by a decision of the commercial court.
2. The sale of part of the debtor's property in the rehabilitation procedure shall be carried out in accordance with this Code.
Article 57. Report of the rehabilitation manager↑
1. 15 days before the end of the term of the rehabilitation procedure determined by the rehabilitation plan, as well as if there are grounds for terminating the rehabilitation procedure, the rehabilitation manager is obliged to submit a written report to the creditors' meeting and notify the creditors of the time and place of the creditors' meeting.
2. The report of the rehabilitation manager must contain:
information on the implementation of the rehabilitation plan;
the debtor's balance sheet as of the last reporting date;
calculation of the debtor's profits and losses;
information about the debtor's availability of funds in accounts and the status of settlements with creditors;
information about the debtor's receivables as of the date of submission of the report and about the debtor's unrealized claim rights;
information about the status of the debtor's accounts payable as of the date of submission of the report.
3. The report of the rehabilitation manager shall be accompanied by evidence of satisfaction of the claims of bankruptcy creditors in accordance with the register of creditors' claims.
Simultaneously with the report, the remediation manager shall submit one of the following proposals:
making a decision to terminate the rehabilitation procedure in connection with the restoration of the debtor's solvency;
applying to the commercial court before the end of the rehabilitation procedure with a petition to declare the debtor bankrupt and initiate liquidation proceedings;
an application to the commercial court with a request for approval of the amendments to the reorganization plan approved by the creditors' meeting and an extension of the term of the reorganization procedure.
4. The report of the rehabilitation manager must be considered by the creditors' meeting no later than 10 days from the date of its receipt and no later than the end of the rehabilitation procedure period specified in the rehabilitation plan.
5. Based on the results of consideration of the report of the rehabilitation manager, the creditors' meeting shall decide to apply to the commercial court with a request for:
closure of the case proceedings in connection with the implementation of the rehabilitation plan and the restoration of the debtor's solvency;
termination of the rehabilitation procedure, declaration of the debtor as bankrupt and initiation of liquidation proceedings;
approval of changes to the rehabilitation plan and extension of the rehabilitation procedure.
In the event of circumstances that constitute grounds for terminating the reorganization procedure, the creditors' meeting may adopt an appropriate decision in the absence of a report from the reorganization manager.
6. If the creditors' meeting has not adopted any of the decisions specified in part five of this article, or such a decision has not been submitted to the commercial court within 15 days from the date of expiration of the rehabilitation procedure, the commercial court shall consider the issue of closing the bankruptcy proceedings or declaring the debtor bankrupt and initiating liquidation proceedings.
7. The report of the rehabilitation manager, considered by the creditors' meeting, and the minutes of the creditors' meeting shall be sent to the commercial court no later than five days from the date of such meeting.
The report of the reorganization manager shall be accompanied by a register of creditors' claims and complaints of creditors (if any) who voted against the decision adopted by the creditors' meeting or did not participate in the vote.
8. The report of the reorganization manager and the creditors' complaints shall be considered at a meeting of the commercial court. The reorganization manager and the creditors who filed the complaints shall be notified of the time and place of such consideration.
9. If the creditors' meeting has decided to close the proceedings in the case due to the implementation of the rehabilitation plan and the restoration of the debtor's solvency, the report of the rehabilitation manager shall be subject to approval by the commercial court.
10. A resolution shall be issued approving the report of the remediation manager or refusing to approve the said report.
11. In the event of the expiration of the terms of the reorganization procedure provided for by the reorganization plan, and provided that there is no request from the creditors' meeting to extend the terms of the reorganization procedure in connection with the approval of the relevant amendments to the reorganization plan, the commercial court shall declare the debtor bankrupt and open liquidation proceedings.
12. The extension of the term of the rehabilitation procedure shall be carried out by the commercial court after making appropriate changes (additions) to the debtor's rehabilitation plan. Changes to the rehabilitation plan shall be approved by the creditors' meeting and approved by the commercial court in accordance with the requirements of this Code.
13. Settlements with creditors are carried out by the rehabilitation manager in accordance with the procedure established by the rehabilitation plan.
14. Copies of the economic court ruling and the report of the rehabilitation manager shall be sent to the parties to the case and other participants in the bankruptcy case.
Section IV. LIQUIDATION PROCEDURE↑
Article 58. Resolution on declaring the debtor bankrupt and initiating liquidation proceedings↑
1. In cases provided for by this Code, the commercial court, in a court session with the participation of the parties, adopts a resolution declaring the debtor bankrupt and initiates liquidation proceedings.
The court determines the period within which the liquidator is obliged to liquidate the debtor. This period may not exceed 12 months.
Failure to appear at a court hearing by persons who were duly notified of the time and place of such hearing shall not prevent the proceedings in the case.
2. At the request of the creditors' meeting or the liquidator, the commercial court may decide to initiate the reorganization procedure even after the debtor has been declared bankrupt, provided that there is a reorganization plan approved by the creditors' meeting. The creditors shall consider the reorganization plan in accordance with Article 52 of this Code.
The decision of the creditors' meeting to apply to the commercial court with a petition for the introduction of the rehabilitation procedure and the appointment of a rehabilitation manager shall be adopted by the creditors' meeting in accordance with the procedure specified in Article 52 of this Code for the approval of the rehabilitation plan. In this case, the votes of creditors who, in accordance with Article 52 of this Code, do not have the right to vote upon the approval of the rehabilitation plan or amendments thereto shall not be taken into account when determining the number of creditors' votes.
The reorganization plan approved by the creditors, the voting minutes of each class of creditors, and the petition for the introduction of the reorganization procedure and the appointment of a reorganization manager are submitted to the commercial court within one business day after the vote.
The Commercial Court shall issue a ruling on the introduction of the debtor's rehabilitation procedure, the appointment of a rehabilitation manager and the approval of the rehabilitation plan in accordance with Part Seven of Article 52 of this Code.
In the event that the commercial court issues a ruling refusing to initiate the reorganization procedure and approve the reorganization plan in respect of the debtor, the liquidation procedure shall continue. The issuance of a ruling refusing to initiate the reorganization procedure and approve the reorganization plan shall not prevent a repeated application to the court with the relevant petition.
{Article 58 is supplemented by part two in accordance with Law No. 2971-IX of 20.03.2023 }
Article 59. Consequences of declaring a debtor bankrupt↑
1. From the date of the decision of the commercial court to declare the debtor bankrupt and initiate liquidation proceedings:
The bankrupt's economic activity is completed with the completion of the technological cycle for manufacturing products if it is possible to sell them, except for the conclusion and execution of contracts aimed at protecting the bankrupt's property or ensuring its preservation (maintenance) in proper condition, lease agreements for property that is temporarily not in use for the period before its sale in the liquidation procedure, etc.;
the deadline for the fulfillment of all monetary obligations of the bankrupt is considered to have arrived;
the bankrupt does not have any additional obligations, including the payment of taxes and fees (mandatory payments), except for expenses directly related to the implementation of the liquidation procedure;
the accrual of penalties (fines, penalties), interest and other economic sanctions on all types of debts of the bankrupt is suspended;
information about the bankrupt's financial situation ceases to be confidential or constitute a trade secret;
the sale of the bankrupt's property is permitted in accordance with the procedure provided for by this Code;
The seizure imposed on the property of a debtor declared bankrupt and other restrictions on the disposal of such debtor's property shall be canceled. The imposition of new seizures or other restrictions on the disposal of the bankrupt's property shall not be allowed;
the powers of the bankrupt's management bodies regarding the management of the bankrupt and the disposal of his property are terminated, if this has not been done earlier, the members of the executive body (manager) of the bankrupt are dismissed from work in connection with the bankruptcy of the enterprise, and the powers of the owner (body authorized to manage property) of the bankrupt's property are also terminated.
2. Within 15 days from the date of appointment of the liquidator, the relevant officials of the bankrupt shall be obliged to transfer the accounting and other documentation, seals and stamps, material and other valuables of the bankrupt to the liquidator. In case of evasion from the performance of the specified duties, the relevant officials of the bankrupt shall be obliged to compensate for the losses caused by such evasion. The liquidator shall have the right to order the production of duplicates of the seal and stamps in case of their loss.
{Part two of Article 59 as amended by Law No. 2971-IX of 20.03.2023 }
3. In order to identify creditors with claims under the obligations of a debtor declared bankrupt that arose during the bankruptcy proceedings, the commercial court shall officially publish a notice of the declaration of the debtor as bankrupt and the opening of liquidation proceedings on the official web portal of the judiciary of Ukraine.
4. The notification of the declaration of the debtor as bankrupt and the initiation of liquidation proceedings must contain:
name and other details of the debtor declared bankrupt;
the name of the commercial court in whose proceedings the bankruptcy case is being heard;
the date of adoption by the commercial court of a resolution declaring the debtor bankrupt and initiating liquidation proceedings;
information about the liquidator.
5. The application with the claims of the current creditor must comply with the requirements established by Part Three of Article 45 of this Code.
Article 46 of this Code shall apply to the application with the claims of the current creditor .↑
{Article 59 is supplemented by part five in accordance with Law No. 2971-IX of 20.03.2023 }
6. A resolution declaring a debtor bankrupt is the basis for the cancellation of all arrests and other restrictions on the property of such a debtor (except for those applied in criminal proceedings) and the performance of relevant registration actions.
{Article 59 is supplemented by part six in accordance with Law No. 3985-IX of 19.09.2024 }
Article 60. Functions of the commercial court in the liquidation procedure↑
1. In the resolution on declaring the debtor bankrupt and initiating liquidation proceedings, the commercial court shall appoint a liquidator of the bankrupt, taking into account the requirements established by this Code, from among the arbitration managers entered in the Unified Register of Arbitration Managers of Ukraine.
{Part two of Article 60 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
3. In the liquidation procedure, the commercial court shall consider complaints against the actions (inaction) of the liquidator and exercise other powers provided for by this Code.
4. In the liquidation procedure, the commercial court considers applications with claims from current creditors that were received by the commercial court after the official publication of the notice of the debtor's declaration of bankruptcy.
Applications with claims of current creditors are considered by the commercial court in the order of their receipt. Based on the results of consideration of the said applications, the commercial court shall, by its decision, recognize or reject (in whole or in part) the claims of such creditors.
The claims of current creditors shall be repaid in the order of priority determined by Article 64 of this Code.
If the creditor has declared claims after settlements with other creditors have been made, the funds paid to such creditors are not refundable.
Article 61. Powers of the liquidator↑
1. From the date of his appointment, the liquidator shall exercise the following powers:
takes charge of the debtor's property and ensures its preservation;
performs functions of managing and disposing of the bankrupt's property;
conducts an inventory and determines the initial value of the bankrupt's property;
analyzes the financial condition of the bankrupt, draws a conclusion on the presence or absence of signs of bankruptcy, concealment of persistent financial insolvency, illegal actions during the bankruptcy proceedings based on the results of its conduct;
{Paragraph five of part one of Article 61 as amended by the Law No. 3249-IX dated 13.07.2023 }
performs the powers of the head (management bodies) of the bankrupt;
forms a liquidation estate;
submits claims to third parties for the return of receivables to the bankrupt;
has the right to receive a loan for the payment of severance pay to employees who are dismissed as a result of the liquidation of the bankrupt, which is reimbursed in accordance with this Code on an extraordinary basis from the funds received from the sale of the bankrupt's property;
from the date of declaring the debtor bankrupt and opening the liquidation procedure, notify the bankrupt's employees of the dismissal and carry it out in accordance with the labor legislation of Ukraine. The payment of severance pay to the dismissed employees of the bankrupt is carried out by the liquidator primarily at the expense of funds received from the sale of the bankrupt's property or a loan obtained for this purpose;
declares objections in accordance with the established procedure regarding the claims of current creditors against the debtor for obligations that arose during the bankruptcy proceedings and are unpaid;
submits applications to the court to declare the debtor's transactions (contracts) invalid;
takes measures aimed at searching, identifying and returning the bankrupt's property held by third parties;
ensures compliance with the requirements of parts four - six of Article 25 of the Law of Ukraine "On Integrated Prevention and Control of Industrial Pollution", except in cases of sale of the debtor's property in the form of an integral property complex, and is liable for their non-compliance;
{Part one of Article 61 is supplemented with a new paragraph in accordance with Law No. 3855-IX of 16.07.2024 }
transfers, in accordance with the established procedure, the bankrupt's documents for storage, which, in accordance with regulatory legal acts, are subject to mandatory storage;
sells the bankrupt's property to satisfy the claims entered in the register of creditors' claims, in accordance with the procedure provided for by this Code;
submits data (information) necessary for maintaining the Unified Register of debtors in respect of whom bankruptcy (insolvency) proceedings have been opened, in accordance with the procedure established by the state body for bankruptcy;
{Paragraph sixteen of part one of Article 61 as amended by Law No. 2971-IX of 03/20/2023 }
in the event of the bankrupt conducting activities related to state secrets, takes measures to liquidate the regime-secret body;
maintains a register of creditors' claims;
submits, in accordance with the established procedure and in cases provided for by the Law of Ukraine "On Prevention and Counteraction to the Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction", information to the central executive body implementing state policy in the field of prevention and counteraction to the legalization (laundering) of proceeds from crime, financing of terrorism and financing of the proliferation of weapons of mass destruction;
takes actions to cancel the registration of the issue of shares, as provided for by law, if the organizational and legal form of the bankrupt legal entity is a joint-stock company;
exercises other powers provided for by this Code.
2. In the exercise of his powers, the liquidator, the creditor has the right to file claims against third parties who, in accordance with the legislation, bear subsidiary liability for the debtor's obligations in connection with his bankruptcy. The amount of the said claims is determined from the difference between the sum of the creditors' claims and the liquidation estate.
{Paragraph one of part two of Article 61 as amended by Law No. 2971-IX of March 20, 2023 }
In the event of bankruptcy of a debtor due to the fault of its founders (participants, shareholders) or other persons, including the fault of the debtor's manager, who have the right to give instructions binding on the debtor or are able to otherwise determine his actions, the founders (participants, shareholders) of the debtor - a legal entity or other persons may be held subsidiary liable for his obligations in the event of insufficiency of the debtor's property.
The collected amounts shall be included in the liquidation estate and may be used only to satisfy the claims of creditors in the order of priority established by this Code.
3. During the liquidation procedure, the liquidator is obliged to use only one (liquidation) account of the debtor in a banking institution. The balances of funds on other accounts are transferred to the debtor's liquidation account. If the debtor's creditor is a non-resident of Ukraine, the liquidator has the right to use the debtor's foreign currency account in a banking institution for settlements with such a creditor. The funds received during the liquidation procedure are credited to the debtor's liquidation account. After payment of the expenses related to the liquidation procedure and payment of the main and additional remuneration of the arbitration manager, payments are made to creditors in the order of priority established by this Code.
Payment of expenses related to the liquidation procedure is carried out in the following order:
first of all, the costs associated with the liquidation procedure are paid, and the liquidator's remuneration is paid;
Secondly, obligations are fulfilled to persons who, after the opening of proceedings in the debtor's bankruptcy case, provided credit, supplied raw materials, and components with deferred payment.
The funds received from the sale of the property that is the subject of security shall be used to reimburse the costs associated with the maintenance, preservation and determination of the value of such property. The composition and amount of such costs shall be subject to agreement by the secured creditor. The funds remaining after the above payments are made shall be used exclusively to satisfy the claims of creditors under the obligations that secure such property.
{Part Three of Article 61 as amended by Law No. 2971-IX of 03/20/2023 }
4. The liquidator shall, at least once a month, submit to the creditors' committee a report on his/her activities, information on the financial condition and property of the debtor on the day of the opening of the liquidation procedure and during the liquidation procedure, on the use of the debtor's funds, as well as other information at the request of the creditors' committee.
5. The liquidator is obliged, at the request of the commercial court and the state bankruptcy authority, to provide the necessary information regarding the conduct of the liquidation procedure.
6. The actions (inaction) of the liquidator may be appealed to the commercial court by the participants in the bankruptcy case whose rights have been violated by such actions (inaction).
7. In the event of liquidation of a bankrupt enterprise, obliged by law to transfer housing facilities, including dormitories, preschool institutions and communal infrastructure facilities, to the territorial community, the liquidator transfers, and the local government body accepts such facilities without additional conditions in the manner prescribed by law.
{Part seven of Article 61 as amended by Law No. 2971-IX of 03/20/2023 }
Article 62. Liquidation estate↑
1. All types of property assets (property and property rights) of the bankrupt that belong to him by right of ownership or economic management shall be included in the liquidation estate.
2. Property, determined by generic characteristics, belonging to the bankrupt by right of possession or use, shall be included in the liquidation estate.
3. Individually determined property belonging to the bankrupt on the basis of real rights, other than the right of ownership and economic management, may not be included in the liquidation estate.
An object of trust property cannot be included in the liquidation estate of the trust owner or trust founder.
{Part three of Article 62 is supplemented by paragraph two in accordance with Law No. 132-IX of September 20, 2019 }
4. If the bankrupt's property includes property excluded from circulation, the liquidator is obliged to transfer it to the relevant persons in accordance with the established procedure.
5. The liquidator, having identified the share belonging to the bankrupt in the joint property, shall, in order to satisfy the claims of creditors, raise the issue of the allocation of this share in accordance with the established procedure.
6. Assets included in the mortgage coverage shall not be included in the liquidation estate of the issuer of such bonds and the administrator for the issue of bonds. The alienation of these assets, including forced alienation, shall be carried out in accordance with the procedure provided for by the Law of Ukraine "On Mortgage Bonds".
The assets of the administrator under the bond issue, received by him from the issuer of the relevant bonds, persons providing security for them, in the process of collecting debt under such bonds or in the bankruptcy procedure, or liquidation of such persons for subsequent transfer to the bondholders as repayment and payment of income thereon, shall not be included in the liquidation estate of such administrator under the bond issue. The alienation of these assets shall be carried out in accordance with the Law of Ukraine "On Capital Markets and Organized Commodity Markets".
{Part six of Article 62 is supplemented by paragraph two in accordance with Law No. 738-IX of June 19, 2020 }
{Part Six of Article 62 as amended by Law No. 738-IX of June 19, 2020 }
7. Property in respect of which the debtor is a user (provided that the right of use cannot be alienated under law or contract), balance holder or custodian shall be returned to its owner in accordance with law or contract.
{Part seven of Article 62 as amended by Law No. 3985-IX of September 19, 2024 }
8. State property that was not included in the authorized capital of a business company in the process of privatization (corporatization) and is on the balance sheet of the bankrupt is not included in the liquidation estate.
The entity managing such property shall, from the date of adoption by the commercial court of a resolution declaring the debtor bankrupt and initiating liquidation proceedings, within the period established by Part Two of Article 59 of this Code, make a decision on the further use of this property.
9. The bankrupt's grain stored in his grain warehouse shall be included in the bankrupt's property only after the grain has been fully returned to the depositors according to all grain warehouse documents issued by such business entity.
10. Intellectual property rights, exclusive property rights to which are retained by a state-owned higher education institution, are not included in the liquidation estate and are returned to the state-owned higher education institution that contributed them to the authorized capital of the business company.
Article 63. Peculiarities of the sale of the bankrupt's property↑
{Title of Article 63 as amended by Law No. 2971-IX of 03/20/2023 }
1. After conducting an inventory and obtaining consent to sell the property, the liquidator sells the bankrupt's property at auction.
The initial cost of selling the bankrupt's property is its value determined by the liquidator.
The liquidator may sell directly or on commission through a retail organization at a reasonable price of perishable goods.
The liquidator may also sell directly or on commission through a retail organization at a reasonable price production inventories, low-value and perishable items, the market value of which does not exceed one minimum wage.
In the event of the sale at auction in the liquidation procedure of the bankrupt's property in the form of a single property complex, a change in the owner of the single property complex is not a basis for re-issuing documents and/or making changes to documents certifying the rights of such a legal entity to own, use, dispose of property, re-issuing a license and other documents of a permitting nature, making changes to the lease agreement and/or its re-issuance in relation to land and other property of the debtor. In such legal relations, the buyer of all the debtor's property in the form of a single property complex is the debtor's successor in title in this regard.
{Part one of Article 63 is supplemented by paragraph five in accordance with Law No. 2971-IX of March 20, 2023 }
In such a case, the new owner of the debtor's property has the right to continue to carry out certain actions related to the conduct of economic activity or types of economic activity on the basis of a license or permit previously issued to such debtor.
{Part one of Article 63 is supplemented by paragraph six in accordance with Law No. 2971-IX of March 20, 2023 }
2. The liquidator shall sell financial instruments in accordance with the procedure established by the legislation of Ukraine, in accordance with the agreement concluded between the liquidator and the investment firm.
{Part two of Article 63 as amended by Law No. 738-IX of 06/19/2020 }
3. The terms of contracts concluded for the sale of the bankrupt's property may not provide for installments or deferral of payments for the acquired property.
Article 64. Priority of satisfaction of creditors' claims↑
1. The funds received from the sale of the bankrupt's property shall be used to satisfy the claims of creditors in accordance with the procedure established by this Code. In this case:
1) are primarily satisfied:
claims for payment of arrears for work performed and/or services provided, as well as other funds due to gig specialists under gig contracts concluded in accordance with the Law of Ukraine "On Stimulating the Development of the Digital Economy in Ukraine", and insurance contributions for mandatory state pension insurance and other social insurance accrued on these amounts, including reimbursement of a loan obtained for these purposes;
{Paragraph 1 of Part One of Article 64 is supplemented with a new paragraph in accordance with Law No. 1667-IX of July 15, 2021 }
claims for payment of wage arrears to working and dismissed employees of the bankrupt, monetary compensation for all unused days of annual leave and additional leave to employees who have children, other funds due to employees in connection with paid absence from work (payment for downtime not due to the employee's fault, guarantees for the time of performing state or public duties, guarantees and compensation for business trips, guarantees for employees sent for advanced training, guarantees for donors, guarantees for employees sent for examination to a medical institution, social payments in connection with temporary loss of working capacity at the expense of the enterprise, etc.), as well as severance pay due to employees in connection with the termination of employment relations, and insurance contributions for mandatory state pension insurance and other social insurance accrued on these amounts, including reimbursement of a loan received for these purposes;
demands for payment of arrears for compensation for losses caused to the State Budget of Ukraine as a result of the execution of decisions of the European Court of Human Rights rendered against Ukraine;
creditors' claims under insurance contracts;
expenses related to bankruptcy proceedings in a commercial court that were incurred and not paid before the opening of liquidation proceedings;
{Paragraph six of clause 1 of part one of Article 64 as amended by Law No. 3985-IX of September 19, 2024 }
creditors' expenses for conducting an audit, if the audit was conducted by decision of the commercial court at their expense;
creditors' claims under agreements to attract interim and/or new financing in the preventive restructuring procedure;
{Paragraph 1 of Part One of Article 64 is supplemented by paragraph eight in accordance with Law No. 3985-IX of September 19, 2024 }
2) secondly, the following are satisfied:
claims for obligations arising from causing harm to the life and health of citizens, by capitalizing in the liquidation procedure the relevant payments, including to the Pension Fund of Ukraine for citizens insured in the system of mandatory state social insurance, in accordance with the procedure established by the Cabinet of Ministers of Ukraine, obligations for payment of insurance contributions for mandatory state pension insurance and other social insurance, except for claims satisfied out of turn, for the return of unused funds to the Pension Fund of Ukraine, as well as claims of citizens - trustees (depositors) of trust companies or other business entities that attracted the property (funds) of trustees (depositors);
{Paragraph two of clause 2 of part one of Article 64 as amended by Law No. 4158-IX of 18.12.2024 }
3) in the third place are satisfied:
requirements for payment of taxes and fees (mandatory payments);
requirements of the central executive body managing the state reserve;
4) in the fourth place, the claims of creditors not secured by collateral are satisfied;
5) fifthly, the requirements for the return of contributions of members of the labor collective to the authorized capital of the enterprise are satisfied;
6) in the sixth place, other requirements are satisfied.
2. The requirements of each subsequent tier shall be satisfied as funds from the sale of the bankrupt's property are received into the account after the requirements of the previous tier have been fully satisfied, except in cases established by this Code.
3. In the event of the availability of funds sufficient to fully satisfy all claims of one queue, the claims of the creditors of this queue shall be satisfied by the arbitration manager within 10 business days from the date of receipt of a sufficient amount of funds to the debtor's account.
{Part three of Article 64 is supplemented with a new paragraph one in accordance with Law No. 2971-IX of 20.03.2023 }
In the event of insufficient funds received from the sale of the bankrupt's property to fully satisfy all claims of one priority, the claims shall be satisfied in proportion to the amount of claims belonging to each creditor of one priority.
4. In the event of a creditor's refusal to satisfy a claim recognized in accordance with the established procedure, the liquidator shall not take into account the amount of the monetary claims of this creditor.
5. The repayment of creditors' claims by offsetting counterclaims of the same kind shall be carried out with the consent of the creditor(s), provided that this does not violate the property rights of other creditors.
6. The claims of secured creditors shall be paid out of the bankrupt's property, which is the subject of security, in accordance with the procedure provided for by this Code, on an out-of-order basis. The arbitration manager shall pay the claims of the secured creditor within 10 business days from the date of receipt of funds from the sale of the subject of security.
{Part Six of Article 64 as amended by Law No. 2971-IX of March 20, 2023 }
7. Claims not repaid due to insufficient assets shall be considered repaid.
Article 65. Liquidator's report↑
1. After completing all settlements with creditors, the liquidator shall submit to the commercial court (and in the case of liquidation of an insurer or credit union - also to the National Bank of Ukraine) a report and liquidation balance sheet, to which shall be attached:
{Paragraph one of part one of Article 65 as amended by Law No. 1909-IX of 11/18/2021 }
information based on the results of the inventory of the debtor's property and a list of the liquidation estate;
information on the sale of liquidation assets with reference to concluded purchase and sale agreements;
copies of documents confirming the alienation of the debtor's assets during the liquidation procedure (including auction results reports, purchase and sale agreements, property acceptance and transfer certificates, property acquisition certificates at auction, etc.);
in the case provided for in paragraph fourteen of part one of Article 61 of this Code - documents confirming compliance with the requirements of parts four - six of Article 25 of the Law of Ukraine "On Integrated Prevention and Control of Industrial Pollution";
{Part one of Article 65 is supplemented with a new paragraph in accordance with Law No. 3855-IX of 16.07.2024 }
register of creditors' claims with data on the amounts of settled creditors' claims;
documents confirming the repayment of creditors' claims;
certificate from the archival institution on the acceptance of documents that, according to the law, are subject to long-term storage;
for joint-stock companies - an order to cancel the registration of the issue of shares issued by the National Securities and Stock Market Commission;
for issuers of debt securities - a report on the results of redemption of securities.
The commercial court shall notify the liquidator and creditors of the time and place of the court session at which the report and liquidation balance sheet are to be considered.
The liquidator's duty is to take all necessary actions aimed at identifying and recovering the debtor's assets.
The Commercial Court, after hearing the liquidator's report and the opinions of the creditors, issues a ruling approving the liquidator's report and the liquidation balance sheet.
2. If, as a result of the liquidation procedure, after satisfying the creditors' claims, there is no property left or the property is not found or is missing, the commercial court shall issue a ruling on the termination of the bankrupt legal entity. A copy of this ruling shall be sent to the state registrar for the state registration of the termination of the bankrupt legal entity, as well as to the owner of the property.
{Part two of Article 65 as amended by Laws No. 2971-IX of March 20, 2023 , No. 3985-IX of September 19, 2024 }
3. If the liquidator has not identified any property assets that are subject to inclusion in the liquidation estate, he is obliged to separately indicate such property assets in the liquidation balance sheet and submit to the commercial court a liquidation balance sheet that certifies the bankrupt's absence of property.
The discovery, after the closure of bankruptcy proceedings, of the bankrupt's property sufficient to cover the costs associated with the proceedings in the case is grounds for the economic court to resume the proceedings in the case at the request of a party to the case.
If the bankruptcy proceedings have not been resumed, such property of the bankrupt, by decision of the commercial court, shall become the property of the relevant territorial community or state property, provided that the debtor is a state-owned enterprise or a business partnership in whose authorized capital more than 50 percent of the shares (shares) belong to the state.
{Part Three of Article 65 as amended by Law No. 2971-IX of March 20, 2023 }
4. If the commercial court concludes that the liquidator has not identified or sold the bankrupt's property assets in full, the court shall issue a ruling on the appointment of a new liquidator in accordance with the procedure established by this Code.
5. If the bankrupt's property is sufficient to satisfy the creditors' claims in full, he shall be deemed to have no debts and may continue his business activities. In such a case, the liquidator shall, within five days from the date of the adoption of the relevant decision by the commercial court, notify the body or official of the body competent to appoint the head (management bodies) of the debtor, and, if necessary, convene a general meeting or session of the relevant body and continue to exercise the powers of the head (management bodies) of the debtor until their appointment in accordance with the established procedure.
The commercial court may issue a resolution on the liquidation of a legal entity that has been discharged from debts only if the balance of its property assets is less than what is required for it to continue its business activities in accordance with the law.
6. The liquidator shall exercise his powers until the completion of the liquidation procedure in accordance with the procedure established by this Code.
{Part six of Article 65 as amended by Law No. 2971-IX of March 20, 2023 }
Article 66. Dismissal of the debtor's employees. Benefits and compensation for dismissed employees↑
1. The dismissal of the debtor's employees may be carried out after the opening of bankruptcy proceedings and the appointment of a property administrator by the commercial court in accordance with the requirements of labor legislation.
2. Severance pay to dismissed employees of the debtor shall be paid by the arbitration manager in the manner and amounts established by the legislation on labor and employment of the population.
{Part three of Article 66 was excluded on the basis of Law No. 2971-IX of 20.03.2023 }
Article 67. Storage of documents↑
1. The liquidator shall ensure the proper preparation, organization and storage of all, including financial and business, documents of the bankrupt during the liquidation procedure.
2. Before the commercial court issues a resolution on the liquidation of a bankrupt legal entity, the liquidator shall be obliged to ensure the preservation of the bankrupt's archival documents and, in agreement with the central executive body implementing state policy in the field of archival affairs and record-keeping or with the archival institution authorized by it, determine the place of their further storage.
{Part two of Article 67 as amended by Law No. 2971-IX of 20.03.2023 }
3. The archival institution designated for further storage of the bankrupt's archival documents is obliged to accept them for storage free of charge.
{Part three of Article 67 as amended by Law No. 2971-IX of 03/20/2023 }
4. At enterprises carrying out activities related to state secrets, the liquidator is obliged to ensure the implementation of scientific and technical processing, the removal for destruction and transfer for storage of material carriers of classified information, as well as the implementation of other measures in accordance with the legislation on the protection of state secrets.
{Part Four of Article 67 as amended by Law No. 2971-IX of March 20, 2023 }
Section V. SALE OF PROPERTY IN PROCEEDINGS IN A BANKRUPTCY (INSTALLMENT) CASE↑
{Title of Section V as amended by Law No. 2971-IX of March 20, 2023 }
Article 68. Sale of property at auction↑
1. The sale of the debtor's property at auction shall take place in an electronic trading system. The procedure for the functioning of the electronic trading system , the organization and conduct of electronic auctions, the payment, return of guarantee deposits and the payment of remuneration to operators of electronic platforms shall be approved by the Cabinet of Ministers of Ukraine.
{Part one of Article 68 as amended by Law No. 3985-IX of September 19, 2024 }
2. An authorized electronic platform is a hardware and software complex authorized in accordance with the procedure established by the Cabinet of Ministers of Ukraine.
3. The procedure for granting access to authorized electronic platforms to the electronic trading system and the amount of the fee for such access shall be established by the Cabinet of Ministers of Ukraine.
4. The auction customer is the arbitration manager appointed by the commercial court in accordance with the procedure established by this Code.
5. The customer and operators of authorized electronic platforms are prohibited from setting requirements, taking actions or failing to take action that in any way violate the equality of auction participants or allow their discrimination.
All auction participants, as well as observers, are guaranteed equal access to any information about the property put up for sale, as well as about the progress of the preparation and conduct of the auction.
6. Preemptive right to purchase property may not be applied at the auction.
7. The specifics of the sale of property of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, in the procedure for liquidation of the debtor are determined by Article 96 of this Code.
{Article 68 is supplemented by part seven in accordance with Law No. 2971-IX of 20.03.2023 }
8. If the bankrupt's property is subject to seizure or other restrictions on property (except for those applied in criminal proceedings) before the start of the auction, such seizure or restrictions, provided that this is indicated in the auction announcement, shall not be an obstacle to the sale of the bankrupt's property at auction, including the suspension, cancellation or other interruption of the auction, as well as the determination of the auction winner and the conclusion of a transaction with him.
{Article 68 is supplemented by part eight in accordance with Law No. 3985-IX of 19.09.2024 }
Article 69. Electronic trading system↑
1. An electronic trading system is a two-level information and telecommunications system consisting of a central database and authorized electronic platforms that interact with the central database through the application programming interface of such a central database.
{Paragraph one of part one of Article 69 as amended by Law No. 2971-IX of March 20, 2023 }
The central database is a set of technical and software tools consisting of application programming interfaces, auction modules, auxiliary software services and databases that provide the possibility of conducting the auction procedure in electronic form and guarantee equal access to information to auction participants in electronic form. The currently used version of the program code of all components of the central database is open and publicly available.
{Paragraph two of part one of Article 69 as amended by Law No. 2971-IX of 03/20/2023 }
2. The electronic trading system must be publicly available, non-discriminatory and guarantee equal rights and access to information to all interested parties, and when exchanging and storing information and documents, the integrity of data about participants during the auction and their confidentiality must be ensured until the auction is completed.
3. The electronic trading system must provide:
1) creation, storage and publication of all information about the auction;
2) automatic exchange of information and documents with authorized electronic platforms;
3) the possibility of exchanging information using the Internet;
4) availability of publicly available means of electronic communications that do not restrict participation in the auction;
{Clause 4 of Part Three of Article 69 as amended by Law No. 2801-IX of 01.12.2022 }
5) availability of a system for electronic document exchange using identification methods;
6) identification of auction participants, provided that no persons have access to such data until the end of the auction;
7) precise determination of the time and date of the auction participant's submission of price offers;
8) protection of information received from the customer and auction participants;
9) uninterrupted operation of the auction;
10) storage of data and documents provided by customers and auction participants for seven years, automatic backup and restoration of this data;
11) ensuring the continuity of the auction;
12) sending messages to auction participants in their personal account and by email.
Article 70. Auction period↑
1. The auction customer must announce the holding of the first auction within 20 days from the date of receipt of consent to the sale of property or determination of the auction conditions by the court in accordance with this Code.
Article 71. Authorized electronic platforms↑
1. The list of authorized electronic platforms, indicating their web addresses and operators, is contained in the electronic trading system.
2. An authorized electronic platform must provide:
1) the ability to search for information by the date of posting the announcement, the date of the auction, the type of property, the price, the lot number, the location of the property, the name of the debtor and the auction customer;
2) the possibility of anonymous 24-hour viewing, copying and printing of information based on common web browsers and editors without the need to use specially created technological and software tools, without restrictions and without charging a fee;
3) automatic placement, receipt and transmission of information and documents;
4) use of services with automatic information exchange;
5) equal and free access to the auction for all participants and the ability to view the auction in interactive real-time mode for all interested parties.
3. The winner of the auction is obliged to pay a fee to the operator of the authorized electronic platform through which the winner participated in the auction.
The reward is paid exclusively by the auction winner.
Article 72. Cancellation of the auction↑
1. The auction customer has the right to cancel the auction only in case of violation of the established procedure for its preparation before the start of bidding.
In this case, the auction customer is obliged to announce a new auction within 10 working days.
2. Cancellation of the auction shall be carried out by entering information about it into the electronic trading system through the authorized electronic platform through which the announcement of the auction was submitted. The information on the cancellation of the auction shall indicate the reasons for its cancellation.
3. In the event of cancellation of the auction, operators of authorized electronic platforms shall return to participants the guarantee deposits paid by them no later than three banking days.
Article 73. Invalidation of a transaction made in violation of the procedure for preparing and conducting an auction↑
1. A transaction for the sale of property, concluded at an auction held in violation of the established procedure for its preparation or conduct, which prevented or could have prevented the sale of property at the highest price, may be declared invalid by a commercial court within the framework of proceedings in a bankruptcy (insolvency) case upon the application of the debtor, arbitration manager, creditor or person whose interests were thereby violated.
{Part one of Article 73 as amended by Law No. 2971-IX of March 20, 2023 }
Article 74. Liability to persons who failed to participate or win the auction↑
1. If the violation by the auction customer of the procedure for preparing the auction, the violation by the operator of the electronic platform of the procedure for registration, providing access to the auction, their failure to perform other actions provided for by this Code, or the procedure specified in part one of Article 68 of this Code, prevented a person from participating in or winning the auction, the violator, by decision of the commercial court in whose proceedings the bankruptcy (insolvency) case is pending, shall be obliged to pay such person a fine in the amount of the guarantee deposit or in the amount of 10 percent of the price at which the property was sold at the auction, depending on which of these amounts is greater.
{Part one of Article 74 as amended by Law No. 2971-IX of 03/20/2023 }
2. Officials of the operator of an authorized electronic platform who are guilty of the violation provided for in Part One of this Article shall be jointly and severally liable with the operator of the authorized electronic platform. The operator of the authorized electronic platform who has paid the fine or part thereof shall have the right to a recourse claim (recourse) against such officials.
Article 75. Determination of the terms of sale↑
1. The arbitration manager determines the terms of sale in agreement with the creditors' committee and the secured creditor (with respect to the property that is the subject of the security).
2. The mandatory conditions of sale include:
property warehouse (lot);
starting price;
auction step.
{Part three of Article 75 was excluded on the basis of Law No. 2971-IX of 03/20/2023 }
4. The arbitration manager shall be obliged to send the terms of sale to the members of the creditors' committee and, within 20 days from the date on which they received or should have received the terms of sale, to convene the creditors' committee. If the property is the subject of security, the arbitration manager shall be obliged to send the terms of sale to the secured creditor.
5. If the property may include property that is not the subject of security and property that is the subject of security, the terms of sale shall be considered by both the creditors' committee and the secured creditors. In this case, the initial price shall separately distinguish the initial price of both specified types of property. The funds received from the sale of such a lot shall be distributed between the secured creditors and other creditors in proportion to the initial price of the property that is the subject of security and other property.
6. The creditors' committee and the secured creditor may decide on:
consent to the sale of property on the proposed terms;
granting consent to the sale of property by changing the terms of sale;
refusal to grant consent to the sale of property with justification.
7. If the creditors' committee or the secured creditor has decided to refuse to grant consent to the sale of the property or has not made any decision at the creditors' committee meeting or within 20 days from the date on which the secured creditor received or should have received the terms of sale, or if the arbitration manager does not agree with the decision made by the creditors' committee or the secured creditor, the arbitration manager shall be obliged to apply to the court. In such a case, the terms of the auction shall be determined by the court.
Article 76. Procedure for announcing and notifying of an auction↑
1. During the sale of the right of claim at auction, the debtor shall also be notified of the auction.
2. During the sale of real estate at auction, the announcement must also be placed on the relevant real estate.
3. The auction customer provides access to information about the property to be sold, as well as the opportunity to familiarize themselves with the property by its location.
4. Access to information published in the electronic trading system is free and open.
5. Additional conditions for the announcement and notification of the auction shall be established by the Cabinet of Ministers of Ukraine.
Article 77. Content of the auction announcement↑
1. The announcement of an auction in an electronic trading system must contain information about:
the property being sold, its characteristics and location, liens or other restrictions on the property (if any);
{Paragraph two of part one of Article 77 as amended by Law No. 3985-IX of September 19, 2024 }
date and time of the auction start;
{Paragraph three of part one of Article 77 as amended by Law No. 2971-IX of 20.03.2023 }
the starting price and information about the possibility of its reduction at the same auction;
the amount of the guarantee deposit, which is 10 percent of the initial price (20 percent of the initial price - for a new auction if the previous auction is recognized as not having taken place, in accordance with part one of Article 86 of this Code);
{Paragraph five of part one of Article 77 as amended by Law No. 3985-IX of September 19, 2024 }
auction step;
the seller of the property (name, location, means of communication);
deadline and time for submitting applications to participate in the auction;
the procedure for transferring (shipping) movable property if it is the subject of an auction;
the auction customer (name, location, means of communication);
a way to obtain additional information about the auction;
the possibility of providing the winner with a tax invoice.
2. The announcement of an auction on the website of an authorized electronic platform, in addition to the information provided for in part one of this article, must contain:
the amount of remuneration for the operator of the authorized electronic platform;
details of the account to which the guarantee deposit is paid.
3. If the auction is repeated or is held in connection with the recognition of a previous auction as not having taken place, this shall be reported in the announcement, indicating the address of the website page on which information about the previous auction is posted.
4. If a land plot is to be sold, the property description shall indicate its size, cadastral number, intended purpose, availability of communications, etc.
5. If a building, structure, premises, apartment is subject to sale, the property description shall indicate the plan, total area and living area, number of rooms (premises), their area and purpose, wall materials, number of floors, floor or floors on which the premises (apartment) is located, information about utility rooms and structures, information about the land plot on which the building, structure is located, the right to the land plot that passes to the buyer of the building, structure, premises, apartment, etc.
6. If a vehicle is to be sold, the property description shall indicate the make, model, year of manufacture, engine capacity, fuel type, mileage, equipment, need for repair, color, etc.
7. If shares (parts) in the authorized (shared) capital of a business company are subject to sale, the property characteristics shall indicate the name of the business company, its identification code, location, means of communication, the size of the authorized (shared) capital, the number of shares (size of shares) offered for sale, the nominal value of one share, the form of existence of shares, the average number of employees, the area and legal regime of the land plot owned by the business company, the book value of fixed assets, depreciation of fixed assets, book profit, receivables, payables, main types of products (works, services) and their volume, information about the securities registrar. The reporting period shall be the last financial year of activity.
8. If a property right or right of claim is subject to sale, the announcement shall publish copies of all documents necessary to determine the content of the right.
9. The advertisement must contain photographic images of the property for sale.
10. If the property being sold is restricted in circulation, the advertisement shall state these restrictions with reference to the provisions of the law that establish them.
Article 78. Procedure for conducting an auction↑
1. The state bankruptcy authority, the administrator of the electronic trading system, the customer and the operator of the authorized electronic platform are prohibited from taking actions aimed at providing other persons with information about the auction participants until the auction is completed and such information is published by the electronic trading system.
{Part one of Article 78 as amended by Law No. 2971-IX of 20.03.2023 }
2. The winner of the auction is the participant who offered the highest price at the time of the end of the auction, or the participant who offered the next highest price in the case provided for in Part One of Article 86 of this Code.
{Part two of Article 78 as amended by Law No. 3985-IX of September 19, 2024 }
Article 79. Features of conducting a repeated and second repeated auction↑
1. In the event of the end of the auction without determining the winner, the auction customer is obliged to announce a repeat auction within one month.
2. The starting price of the repeated auction is the starting price of the first auction reduced by 20 percent.
3. In the event that the first repeated auction ends without determining the winner, the auction customer is obliged to announce the holding of a second repeated auction within one month (and if the pledged property is being sold - within 45 days).
4. The starting price of the second repeated auction is the starting price of the first repeated auction reduced by 25 percent.
5. The creditors' committee, and in the case of pledged property - the secured creditor, may, by its decision, set the initial price of the re-auction, the second re-auction lower than that specified in parts two and four of this article.
Article 80. Peculiarities of holding an auction with the possibility of reducing the starting price↑
1. The first auction shall be held without the possibility of reducing the initial price. A repeated auction may be held with the possibility of reducing the initial price only with the consent of the secured creditor in respect of the property that is the subject of the security, or with the consent of the creditors' committee in respect of other property subject to sale.
2. The creditors' committee or the secured creditor, when giving consent to the first repeated auction with the possibility of reducing the initial value, has the right to determine the maximum price to which the initial value may be reduced during the auction.
3. The second repeated auction is held with the possibility of reducing the initial price without determining the maximum value, taking into account the requirements established by the Cabinet of Ministers of Ukraine.
{Part Three of Article 80 as amended by Law No. 2971-IX of 03/20/2023 }
Article 81. Sale of property to a secured creditor↑
1. If the debtor's property, which is the subject of security, is not sold at a repeated auction, the creditor whose claims it secures has the right, within 20 days from the date of the end of this auction, to apply to the arbitration manager with an application for the sale of the unsold property to him.
2. The arbitration manager shall, within three days, draw up a report on the sale of the property to the secured creditor at the initial price of the re-auction.
3. If the debtor's property, which is the subject of security, is not sold at the second repeated auction, the creditor whose claims it secures has the right, within 20 days from the end of this auction, to apply to the arbitration manager with an application for the sale of the unsold property to him.
4. The arbitration manager shall, within three days, draw up a report on the sale of the property to the secured creditor at the initial price of the second repeated auction.
5. The arbitration manager shall immediately publish information about the buyer in the electronic trading system.
6. The sale of property to a secured creditor in accordance with the procedure specified in this article shall be equivalent in its legal consequences to the enforcement of a lien (mortgage).
{Article 81 is supplemented by part six in accordance with the Law No. 3249-IX dated 13.07.2023 }
Article 82. Peculiarities of holding an auction for the sale of a claim↑
1. When setting off a claim sold at auction, after the debtor receives a notice of the auction in accordance with the requirements of this Code, an application for setting off must be made to the auction customer. Such application shall be immediately published in the announcement of the auction.
2. If the obligation has been partially fulfilled before the start of the auction, the initial price of the right of claim is proportionally reduced, which the customer shall include relevant information in the auction announcement. If the debt is repaid in full, the right of claim is removed from the auction.
3. The terms of the contract of sale of the debtor's right of claim must provide that the transfer of the right of claim is carried out only after its full payment.
Article 83. Protocol on the results of the auction↑
1. Immediately after the end of the auction, the electronic trading system generates a protocol on the auction results, which is sent to all participants and the auction customer.
2. The minutes shall state:
property offered for sale;
number of auction participants;
initial cost;
the price offered by the auction winner, or information that the auction ended without a winner being determined;
the price or part of the price paid by the winner;
name and location (for a legal entity), surname, first name, patronymic and place of residence (for an individual) of the auction winner;
information about the authorized electronic platform through which the auction winner purchased the property;
the amount of remuneration for the operator of the authorized electronic platform;
details to which funds for the purchased property should be transferred.
3. The original protocol on the auction results shall be signed by the operator of the authorized electronic platform and the winner. After signing the protocol, the operator of the electronic platform shall place it in the electronic trading system no later than five calendar days.
4. Each auction participant may request a copy of the protocol, certified by the authorized electronic platform through which such participant participated in the auction. Such a copy shall be provided on the day of the request.
5. Information on the results of the auction shall be published in the electronic trading system and on the websites of authorized electronic platforms immediately after the auction is completed.
Article 84. Refund of guarantee deposits, paid price and collection of fine↑
1. The guarantee deposits of the auction participants shall be returned within three working days from the date of the end of the auction, except for the cases provided for in parts two and three of this article. The guarantee deposit shall be returned to the participant who offered the next highest price after the winner in the manner, terms and conditions determined by the procedure for the functioning of the electronic trading system.
{Part one of Article 84 as amended by Law No. 3985-IX of September 19, 2024 }
2. The guarantee fee paid by the auction winner, reduced by the amount of the remuneration of the operator of the authorized electronic platform, shall be included in the price payable to the debtor's account.
3. The guarantee deposit is not refundable (except in cases of detection of defects in the property not specified in the auction announcement) if:
1) the auction ended without a winner being determined;
2) the auction winner refused to purchase the property.
Such guarantee deposits (minus the remuneration of the operator of the authorized electronic platform from the winner's guarantee deposit) are a penalty and are transferred to the debtor within three business days from the date of the end of the auction without determining the winner or recognizing the winner of the auction as having refused to purchase the property. The scope of liability of the auction participants (fine) is limited to the amount of the guarantee deposit.
{Part Three of Article 84 as amended by Law No. 2971-IX of March 20, 2023 ; as amended by Law No. 3985-IX of September 19, 2024 }
4. The winner of the auction is considered to have refused to purchase the property if the winner of the auction, within the time limits established by this Code:
1) did not pay the amount due;
2) did not sign the auction protocol;
3) did not sign the act of purchasing property at the auction.
{Article 84 is supplemented with a new part in accordance with Law No. 3985-IX of 19.09.2024 }
5. The operator of an authorized electronic platform who has not returned the guarantee deposit within the established period shall pay a penalty in the amount of 120 percent of the discount rate of the National Bank of Ukraine on the amount of the debt for the period of delay.
{Part of Article 84 as amended by Law No. 2971-IX of 03/20/2023 }
Article 85. Procedure for payment of the price↑
1. The auction winner is obliged to pay the price offered by him (taking into account the difference between the amount of the paid guarantee deposit and the amount of the remuneration of the operator of the authorized electronic platform) to the debtor's account within 10 business days from the date of publication of information on the auction results in the electronic trading system.
{Part one of Article 85 as amended by Law No. 2971-IX of March 20, 2023 }
2. If the buyer is a creditor whose claims are secured by the sold property, he shall be obliged to pay the positive difference between the amount determined in accordance with part one of this Article and the amount of the secured creditor's claims.
The secured creditor is also obliged to pay the costs associated with the maintenance, preservation and determination of the value of the collateral.
{Paragraph two of part two of Article 85 as amended by Law No. 2971-IX of 20.03.2023 }
3. Provided that the auction winner pays at least 50 percent of the amount due, the payment period is extended by 10 calendar days.
{Part Three of Article 85 as amended by Law No. 2971-IX of March 20, 2023 }
4. The customer is obliged to publish information about the payment of the price by the buyer in the electronic trading system and on the websites of authorized electronic platforms no later than three days after full payment and within the same period to notify the property owner about it. Authorized electronic platforms automatically send this information to the auction participants.
Article 86. Termination of the transaction in the event of the auction being declared as not having taken place↑
{Title of Article 86 as amended by Law No. 3985-IX of September 19, 2024 }
1. If the auction winner refuses to purchase the property, the electronic trading system automatically generates and publishes a new auction protocol, determining the participant who offered the next highest price as the auction winner.
If the winner of the auction, determined in accordance with paragraph one of this part, refused to purchase the property or the auction ended without determining the winner, the auction is considered not to have taken place.
{Part one of Article 86 as amended by Law No. 2971-IX of March 20, 2023 ; as amended by Law No. 3985-IX of September 19, 2024 }
2. The customer is obliged to provide information on the recognition of the auction as not held for inclusion in the information on the auction in the electronic trading system and on the websites of authorized electronic platforms no later than three days after the auction is recognized as not held, and within the same period to notify the auction winner and the property owner about this. Authorized electronic platforms automatically send this information to the auction participants.
{Part two of Article 86 as amended by Law No. 2971-IX of 20.03.2023 }
3. After the auction is declared as not held, the customer is obliged to announce the holding of a new auction within 10 working days. Authorized electronic platforms automatically send this information to all participants of the previous auction.
Article 87. Transfer of property, property rights and assignment of the right of claim↑
1. Property purchased at an auction shall be transferred, and the right of claim shall be assigned to the buyer after full payment of the price offered by him. A deed of purchase of property at an auction shall be drawn up on the transfer of property.
2. The auction customer who has not transferred movable property, property rights or has not relinquished the right of claim to the buyer upon his request after full payment of the price shall pay a penalty in the amount of 0.5 percent per day of the sale price for the period of delay.
3. The protocol on the results of the auction and the act on the acquisition of property at the auction are the basis for the notary to issue a certificate of acquisition of property from public auctions (auctions) and state registration of the right of ownership or other property right to real estate in accordance with the procedure prescribed by law. In such a case, the notary's services are paid for by the buyer.
{Part three of Article 87 as amended by Law No. 686-IX of 05.06.2020 }
4. The protocol on the results of the auction and the act on the acquisition of property at the auction are the basis for registration of ownership or other property rights to movable property in accordance with the procedure prescribed by law.
{Article 87 is supplemented by part four in accordance with Law No. 2971-IX of 20.03.2023 }
Article 88. Act on the acquisition of property at auction↑
1. The act of purchasing property at auction shall indicate:
name (title) and place of residence (location) of the seller and buyer, as well as the operator of the authorized electronic platform;
information about the property purchased at auction and its price;
the address of the web page on which information about the auction is posted;
information about the full payment of the price for purchasing property at auction.
2. The act of purchase of property at the auction shall be drawn up in simple written form and shall not require notarial certification. Such act shall be signed by the auction customer and the buyer no later than three working days after the full payment of the price offered by the winner. For untimely signing of the act by the auction customer or untimely provision of it to the buyer, the auction customer shall pay a penalty in the amount of 0.5 percent per day of the sale price for the period of delay.
{Part two of Article 88 as amended by Law No. 2971-IX of 20.03.2023 }
Article 89. Liability for Defects of Property Sold at Auction↑
1. The person who owned the property before the sale at auction, the customer and the auction organizer are not liable for defects in the property, except in cases of their intentional concealment.
Chapter VI. CLOSURE OF PROCEEDINGS IN A BANKRUPTCY (INSTALLABILITY) CASE↑
{Title of Section VI as amended by Law No. 2971-IX of March 20, 2023 }
Article 90. Closure of bankruptcy (insolvency) proceedings↑
{Title of Article 90 as amended by Law No. 2971-IX of 03/20/2023 }
1. The Commercial Court shall close the proceedings in a bankruptcy (insolvency) case in the following cases:
1) failure to enter the debtor - legal entity into the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations;
2) termination in accordance with the procedure established by law of a legal entity that is a debtor, as recorded in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations;
3) death, declaration of death or recognition of a debtor - an individual as missing;
4) the bankruptcy (insolvency) case of the same debtor is pending in the commercial court;
5) restoration of the debtor's solvency or repayment of all creditors' claims in accordance with the register of creditors' claims;
6) approval of the report of the remediation manager in accordance with the procedure provided for by this Code;
7) approval of the liquidator's report in accordance with the procedure provided for by this Code;
8) if no claims have been made against the debtor upon his application after the official publication of the announcement of the opening of bankruptcy (insolvency) proceedings;
8 - 1 ) if a bankruptcy case is opened against business companies that collectively meet the following criteria:
is an operator of critical infrastructure;
shares (stocks, units) of a business partnership were forcibly alienated during martial law;
the state directly or indirectly owns more than 50 percent of the shares (stocks, units) in the authorized capital of a business company, except for business companies that are liquidated by decision of the debtor;
{Part one of Article 90 is supplemented by paragraph 8 - 1 in accordance with Law No. 3723-IX of 05/22/2024 }
9) the debtor is a wholesale supplier of electricity;
{Part one of Article 90 is supplemented by paragraph 9 in accordance with Law No. 3291-IX of 28.07.2023 }
10) if the case is not subject to consideration in the commercial courts of Ukraine according to the law;
11) if the commercial court has not established signs of the debtor's insolvency;
12) conclusion of an amicable agreement between the debtor and creditors in accordance with Article 192 of the Commercial Procedural Code of Ukraine;
13) making a decision on the privatization of a debtor who is a state-owned enterprise or a business company, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state;
14) in other cases provided for by this Code.
{Part one of Article 90 as amended by Law No. 2971-IX of 03/20/2023 }
2. Proceedings in a bankruptcy (insolvency) case may be closed in the cases provided for in paragraphs 2 , 3 , 5 , 9 , 10 , 12 and 13 of part one of this article, at all stages of proceedings in a bankruptcy (insolvency) case (before and after the debtor is declared bankrupt), in the cases provided for in paragraphs 1 , 4 , 6 , 8 and 11 of part one of this article - only before the debtor is declared bankrupt, and in the case provided for in paragraph 7 of part one of this article - only after the debtor is declared bankrupt.
{Part two of Article 90 as amended by Law No. 2971-IX of 03/20/2023 ; as amended by Law No. 3291-IX of 07/28/2023 }
3. A ruling shall be issued on the closure of bankruptcy proceedings.
4. In cases provided for in paragraphs 5-8 of part one of this article, the commercial court shall state in its ruling on the closure of proceedings in the case that the claims of bankruptcy creditors that were not filed within the time limit established by this Code or were rejected by the commercial court shall be deemed extinguished, and the enforcement documents on the relevant claims shall be recognized as unenforceable.
{Part Four of Article 90 as amended by Law No. 2971-IX of March 20, 2023 }
Chapter VII. FEATURES OF PROCEEDINGS IN BANKRUPTCY CASES OF CERTAIN CATEGORIES OF DEBTORS↑
Article 91. General provisions↑
1. Relations related to proceedings in bankruptcy cases defined by this section shall be regulated by this Code, taking into account the features provided for by this section.
Article 92. Peculiarities of bankruptcy of insurers↑
1. When considering a bankruptcy case of an insurer, the National Bank of Ukraine shall be recognized as a participant in the bankruptcy proceedings, and, if such an insurer has outstanding obligations under contracts of compulsory civil liability insurance of owners of land vehicles, also the Motor (Transport) Insurance Bureau of Ukraine (hereinafter referred to as MTIBU), which shall acquire the rights of a creditor for the claims satisfied by it under such contracts.
{Paragraph one of part one of Article 92 as amended by Law No. 3720-IX of 21.05.2024 }
An arbitration manager in a bankruptcy case of an insurer must pass an exam under the training program for arbitration managers in bankruptcy cases of non-banking financial institutions.
The grounds for filing an application to initiate bankruptcy proceedings against an insurer are:
the National Bank of Ukraine classifies the insurer as insolvent and the National Bank of Ukraine makes a decision to revoke the insurer's license;
{Paragraph four of part one of Article 92 as amended by Law No. 4465-IX of 03.06.2025 }
the discovery by the liquidator of the insurer, who carries out the liquidation of the insurer on the basis of paragraph 3 of part one of Article 110 of the Civil Code of Ukraine, of the insufficiency of the value of the property of such insurer to satisfy the claims of creditors.
{Part one of Article 92 as amended by Law No. 1909-IX of 11/18/2021 }
2. An application to initiate bankruptcy proceedings against an insurer may be filed with the commercial court by the debtor, on whose behalf the insurer's liquidator, appointed by the court at the request of the National Bank of Ukraine in accordance with Part Three of Article 105 of the Civil Code of Ukraine, or by the National Bank of Ukraine, acts.
The Commercial Court, in a court session with the participation of the parties, adopts a resolution declaring the insurer bankrupt and initiates liquidation proceedings in the event of the insurer's insolvency or in the event of the insurer's property being insufficient to satisfy the creditors' claims within the procedure provided for in Article 110 of the Civil Code of Ukraine.
{Part two of Article 92 as amended by Law No. 1909-IX of 11/18/2021 }
3. The procedure for preventive restructuring of the insurer is not allowed.
{Part Three of Article 92 as amended by Laws No. 1909-IX of 11/18/2021 , No. 3985-IX of 09/19/2024 }
4. In accordance with this Code, the following judicial procedures shall apply to the debtor-insurer:
disposal of the insurer's property;
liquidation of the insurer.
The procedures specified in this Code regarding the rehabilitation of a debtor after the opening of bankruptcy proceedings do not apply to an insurer.
{Part Four of Article 92 as amended by Law No. 1909-IX of 11/18/2021 }
{Part five of Article 92 was excluded pursuant to Law No. 1909-IX of 11/18/2021 }
6. In the event that an insurer is declared bankrupt by a commercial court and liquidation proceedings are initiated, all insurance contracts concluded by such insurer under which an insured event has not occurred before the date of the said decision shall be terminated.
{Part Six of Article 92 as amended by Law No. 1909-IX of 11/18/2021 }
7. Insured persons under insurance contracts, the validity of which is terminated on the grounds provided for in part six of this article, have the right to demand the return of a part of the insurance premium paid to the insurer in proportion to the difference between the term for which the insurance contract was concluded and the term during which such insurance contract was actually in effect, unless otherwise provided for by law.
8. Insured persons and other persons who are entitled to receive insurance payments under insurance contracts under which the insured event occurred before the date of adoption by the commercial court of a resolution declaring the insurer bankrupt and opening the liquidation procedure, have the right to demand such insurance payments. MTIBU has the right to demand compensation for the regulatory payments (taking into account the costs incurred for their implementation) made by it at the expense of the funds of the relevant MTIBU fund, contributed by other insurers, to fulfill the obligations of such insurer in accordance with part eleven of article 54 of the Law of Ukraine "On Compulsory Insurance of Civil Liability of Owners of Land Vehicles".
{Part eight of Article 92 as amended by Law No. 3720-IX of 05/21/2024 }
9. In the event that an insurer is declared bankrupt by a commercial court and liquidation proceedings are initiated, the claims of creditors under first-priority insurance contracts shall be satisfied in the following order:
first of all - the requirements provided for in part eight of this article under insurance contracts, the object of insurance of which is life, health, working capacity and/or pension provision, liability for damage caused to a person (to his life and health), and under contracts of compulsory insurance of civil liability of owners of land vehicles, if damage is caused to the life and/or health of the injured person, as well as the requirements of MTIBU regarding insurance payments made to MTIBU under the insurer's obligations, if damage is caused to the life and/or health of the injured person;
secondly - the claims of individuals under insurance contracts, the object of insurance of which is property under the right of possession, use and disposal and/or possible losses or expenses, liability for damage caused to the property of an individual, and under contracts of compulsory civil liability insurance of owners of land vehicles, if damage is caused to the property of the injured individual, as well as the claims of MTIBU regarding insurance payments made by MTIBU under the insurer's obligations, if damage is caused to the property of the injured individual;
in the third place - the claims of legal entities under insurance contracts, the object of insurance of which is property under the right of possession, use and disposal and/or possible losses or expenses, liability for damage caused to the property of a legal entity, and under contracts of compulsory civil liability insurance of owners of land vehicles, if damage is caused to the property of the injured legal entity, as well as the claims of MTIBU regarding insurance payments made by MTIBU under the insurer's obligations, if damage is caused to the property of the injured legal entity;
fourthly - the requirements provided for in part seven of this article under insurance contracts, the object of insurance of which is life, health, working capacity and/or pension provision, and under contracts of compulsory civil liability insurance of owners of land vehicles;
fifthly - the claims of individuals under other insurance contracts provided for in part seven of this article;
sixthly - the claims of legal entities under other insurance contracts provided for in part seven of this article.
{Part nine of Article 92 as amended by Law No. 3720-IX of 05/21/2024 }
10. In the event of initiation of bankruptcy proceedings against an insurer who has outstanding obligations under compulsory civil liability insurance contracts for owners of land vehicles, or the court adopts a decision to liquidate the insurer, the arbitration manager is obliged to provide MTIBU with information about creditors whose claims relate to the payment of insurance payments under such insurance contracts, and about the fulfillment of the specified obligations before and during the bankruptcy proceedings against such insurer.
{Article 92 is supplemented by part ten in accordance with Law No. 3720-IX of 21.05.2024 }
Article 92 - 1. Peculiarities of bankruptcy of insurance intermediaries↑
1. From the date of declaring the insurance intermediary bankrupt and initiating the liquidation procedure, the arbitration manager, in accordance with the procedure established by the National Bank of Ukraine, has the right to dispose of funds held in current accounts with a special use regime of the insurance intermediary, without payment orders.
2. Funds held in current accounts with a special regime for the use of an insurance intermediary shall be transferred exclusively to:
1) for the payment of insurance premiums - to insurers to whom they are due in accordance with the contract with the insurer;
2) for making insurance payments - to the insured persons to whom they are due in accordance with the insurance contract;
3) for payment of remuneration for the sale of insurance products - to such insurance intermediaries.
{The Code is supplemented by Article 92 - 1 in accordance with Law No. 1909-IX of 11/18/2021 }
Article 93. Peculiarities of bankruptcy of professional participants in capital markets and organized commodity markets↑
1. If the legislation does not establish a separate bankruptcy procedure for the relevant professional participant in capital markets and organized commodity markets, the provisions of this Code shall apply to such participant, taking into account the features established by this article.
For the purposes of this Article, the term "client" means an investor in financial instruments or an issuer of securities who has entered into an underwriting agreement or an agreement on the organization of placement with a guarantee, or an agreement on the organization of placement without providing a guarantee with a professional participant in the capital markets who is recognized as a debtor in accordance with this Code.
2. The features of the bankruptcy procedure of professional participants in capital markets and organized commodity markets not regulated by this article, as well as measures to protect the rights and interests of clients, shall be established by the National Securities and Stock Market Commission in agreement with the state bankruptcy authority.
3. The procedure for preventing bankruptcy and conducting pre-trial procedures to restore the solvency of professional participants in capital markets and organized commodity markets shall be established by law.
4. The administrator of the property, the rehabilitation manager, the liquidator of a professional participant in the capital markets and organized commodity markets must have a certificate issued by the National Securities and Stock Market Commission for the right to perform actions related to the direct conduct of the relevant type of professional activity in the capital markets and organized commodity markets.
5. The administrator of the property is obliged, within ten days from the date of his appointment, to send, through the official communication channel provided for by the Law of Ukraine "On Capital Markets and Organized Commodity Markets", to the National Securities and Stock Market Commission and to post on the website of such professional participant of the capital markets and organized commodity markets a notice of the initiation of bankruptcy proceedings and the appointment of the administrator of the property. The notification shall specify the details of the certificate issued to the administrator of the property by the National Securities and Stock Market Commission, and clients shall be invited to either provide the professional participant of capital markets and organized commodity markets who is the debtor with an order regarding the actions that must be taken with the clients' assets that are in the possession and/or use and/or disposal of such professional participant of capital markets and organized commodity markets, or to submit to the commercial court an application with claims against such debtor, as well as documents confirming them, for entering information about such client into the register of creditors' claims.
6. Financial instruments, cash and other property belonging to clients of a professional participant in capital markets and organized commodity markets and in the possession and/or use and/or disposal of such participant shall not be included in the liquidation estate.
7. If the clients' claims for the return from the possession and/or use, and/or disposal of the professional participant of capital markets and organized commodity markets, who is the debtor, of bearer securities belonging to clients, which have the same international identification number, exceed the number of such securities, which are in the actual possession of the professional participant of capital markets, the return of such securities to clients shall be carried out in proportion to their claims.
Clients' demands for the return of securities belonging to them in the unsatisfied part thereof shall be recognized as monetary obligations and shall be satisfied in accordance with the priority (class) of the creditor provided for by this Code.
8. During the rehabilitation of a professional capital market participant, the rehabilitation manager has the right, with the client's consent, to transfer securities transferred into possession and/or use and/or disposal by the client to such a professional capital market participant, to another business entity that has a license to conduct the relevant type of activity within the framework of professional activity in the capital markets.
9. Financial instruments owned by a professional participant in capital markets and admitted to trading on organized capital markets shall be subject to sale on organized capital markets.
If the specified financial instruments are not admitted to trading on organized capital markets, they shall be subject to sale in accordance with the procedure established by this Code.
{Article 93 as amended by Law No. 738-IX of 06/19/2020 }
Article 93 - 1. Peculiarities of bankruptcy of a debtor who has obligations under bonds with the participation of an administrator for the issue of bonds↑
1. The administrator for the bond issue shall indicate in the statement of claims against the debtor a single creditor claim equal to the sum of all confirmed claims of bondholders in whose interests such administrator acts. In this case, it is not required to indicate in the statement each bondholder whose claim is included in the single creditor claim.
2. The rights of the administrator under the issue of bonds as a creditor in the bankruptcy case of a debtor who has obligations under the bonds, provided for by this Code, shall be exercised by the administrator taking into account the features established by the Law of Ukraine "On Capital Markets and Organized Commodity Markets".
Payments received by the administrator for the issue of bonds during the bankruptcy proceedings of a debtor who has obligations under the bonds are distributed among the owners of such bonds in the manner provided for by Article 122 of the Law of Ukraine "On Capital Markets and Organized Commodity Markets".
{The Code is supplemented by Article 93 - 1 in accordance with Law No. 738-IX of 19.06.2020 }
Article 93 - 2. Peculiarities of bankruptcy of non-bank payment service providers↑
1. During the consideration of bankruptcy cases of a legal entity that is a payment institution (including a small payment institution), an electronic money institution, a provider of non-financial payment services (hereinafter referred to as a non-bank payment service provider), the National Bank of Ukraine shall be recognized as a participant in the bankruptcy case.
2. The administrator of the property shall be obliged, within ten days from the date of his appointment, to send to the National Bank of Ukraine and to the payment service users of such non-bank payment service provider a notification of the initiation of bankruptcy proceedings and the appointment of the administrator of the property.
3. Funds received by non-bank payment service providers from payment service users, including funds received by them from users/arrived (held) for the benefit of users, in particular through commercial agents, shall not be included in the liquidation estate.
4. From the date of introduction by the commercial court of the debtor's rehabilitation procedure or recognition of a non-bank payment service provider as bankrupt and the opening of the liquidation procedure, the funds of payment service users shall be returned to the client.
The unsatisfied part of the claims of payment service users shall be recognized as monetary obligations and shall be satisfied in the order of priority provided for by this Code.
{The Code is supplemented by Article 93 - 2 in accordance with Law No. 1591-IX of 06/30/2021 - enters into force on 08/01/2022}
Article 93 - 3. Peculiarities of bankruptcy of credit unions↑
1. When considering a bankruptcy case of a credit union, the National Bank of Ukraine shall be recognized as a participant in the bankruptcy proceedings.
An arbitration manager in a credit union bankruptcy case must pass an exam under the training program for arbitration managers in bankruptcy cases of non-bank financial institutions.
2. The grounds for filing an application to initiate bankruptcy proceedings against a credit union are:
the National Bank of Ukraine classifying a credit union as insolvent and the National Bank of Ukraine making a decision to revoke the credit union's license;
{Paragraph two of part two of Article 93 - 3 as amended by Law No. 4465-IX of 03.06.2025 }
the discovery by the liquidator of the credit union, who carries out the liquidation of the credit union on the basis of Article 110 of the Civil Code of Ukraine, of the insufficiency of the value of the credit union's property to satisfy the claims of creditors.
3. An application to initiate proceedings in a case of bankruptcy of a credit union may be filed with the commercial court by the debtor, on whose behalf the liquidator of the credit union acts, appointed by the court at the request of the National Bank of Ukraine in accordance with Part Three of Article 105 of the Civil Code of Ukraine or by the National Bank of Ukraine.
The Commercial Court, in a court session with the participation of the parties, adopts a resolution declaring the credit union bankrupt and initiates liquidation proceedings in the event of the credit union's insolvency or in the event of the credit union's property being insufficient to satisfy creditors' claims within the procedure provided for in Article 110 of the Civil Code of Ukraine.
4. The procedure for preventive restructuring of a credit union is not allowed.
{Part Four of Article 93 - 3 as amended by Law No. 3985-IX of September 19, 2024 }
5. In accordance with this Code, the following judicial procedures shall apply to a debtor - a credit union:
management of credit union property;
liquidation of a credit union.
The procedures specified in this Code regarding the rehabilitation of a debtor after the opening of bankruptcy proceedings do not apply to a credit union.
6. In the event that a commercial court declares a credit union bankrupt and initiates liquidation proceedings, the claims of the credit union's creditors shall be satisfied in the order specified in Article 60 of the Law of Ukraine "On Credit Unions".
{The Code is supplemented by Article 93 - 3 in accordance with Law No. 3254-IX of 14.07.2023 }
Article 94. Peculiarities of bankruptcy of a business entity that is a party to one or more transactions concluded with reference to the binding nature of the liquidation netting agreement↑
1. For the purposes of this Article:
1) the term "transaction in financial instruments" is used in the meaning given in part one of Article 2 of the Law of Ukraine "On Capital Markets and Organized Commodity Markets", and the terms "net liability", "calculation of the value of liabilities", "parties to the liquidation netting agreement", "liquidation netting agreement" - in the meanings given in part two of Article 40 of the Law of Ukraine "On Capital Markets and Organized Commodity Markets";
2) the date of liquidation netting means the date of adoption of the decision provided for in paragraph 1 of part one of Article 39 of the Law of Ukraine "On Capital Markets and Organized Commodity Markets".
2. Liquidation netting is the performance of all of the following actions in accordance with a liquidation netting agreement:
1) the calculation by the person, in respect of whom the liquidation netting agreement specifies that he is responsible for conducting the liquidation netting (hereinafter referred to as the person specified in the liquidation netting agreement), of the value of the obligations of the business entity - a party to the liquidation netting agreement, in respect of which bankruptcy proceedings have been opened, as well as the obligations of each counterparty, which is the other party to such a liquidation netting agreement, under one or more derivative contracts that existed as of the date of the liquidation netting and was concluded by such parties with reference to the binding nature of such a liquidation netting agreement for them. The procedure for such calculation shall be determined by the liquidation netting agreement;
2) termination of all existing obligations under one or more derivative contracts, regardless of their content and/or term (term) of performance, concluded by such parties to the liquidation netting agreement with reference to the binding nature of the liquidation netting agreement for such parties, in the following sequence:
a) replacement, in accordance with Article 604 of the Civil Code of Ukraine, of obligations that existed as of the date of liquidation netting with new monetary obligations, the amount of which is equal to the value of the obligation calculated in accordance with paragraph 1 of this part. In this case, it is considered that the deadline for fulfilling the requirements under such new monetary obligations has come;
b) termination of new monetary obligations provided for in subparagraph "a" of this paragraph by offsetting similar counterclaims for such obligations and determining the net obligation.
3. A liquidation netting agreement may provide for a method of terminating existing obligations under one or more derivative contracts concluded by the parties to the liquidation netting agreement, which differs from part two of this article.
4. Liquidation netting shall not be carried out in the following cases:
1) the relevant master agreement does not provide for the possibility of liquidation netting;
2) the relevant liquidation netting agreement was concluded after the date of adoption of the decision specified in paragraph 2 of part one of this article;
3) a derivative contract containing a reference to the binding nature of the relevant liquidation netting agreement was concluded by the party - a business entity after the date of the decision specified in paragraph 2 of part one of this article.
5. The execution by a person specified in the agreement on liquidation netting, liquidation netting and enforcement of a charge against an encumbrance that ensures the fulfillment of the obligations of a business entity - a party to the agreement on liquidation netting, in respect of which a decision has been made, provided for in paragraph 2 of part one of this article, under one or more derivative contracts specified in paragraph 1 of part two of this article, shall be carried out out of court and shall not require any consent and/or approval of such a business entity or any other person.
6. The provisions of this Code governing the bankruptcy of legal entities shall apply to the bankruptcy proceedings of a business entity that is a party to one or more derivative contracts concluded with reference to the binding nature of the relevant liquidation netting agreement, to the extent that they do not contradict the provisions of this Article. In the event of a conflict between the provisions of this Code governing the bankruptcy of legal entities and the provisions of this Article, the provisions of this Article shall prevail.
7. The provisions of this Article shall also apply to:
1) commodity transactions, transactions in financial instruments, currency values, provided that such transactions (transactions) are carried out with reference to the binding nature of the relevant liquidation netting agreement for them;
2) transactions entered into to ensure the fulfillment of obligations under derivative contracts and other transactions specified in this part.
{Article 94 as amended by Law No. 738-IX of 06/19/2020 }
Article 95. Peculiarities of bankruptcy of a farm↑
1. The basis for declaring a farm bankrupt is its inability to satisfy creditors' claims for monetary obligations and/or fulfill obligations to pay taxes and fees (mandatory payments), insurance premiums for mandatory state pension and other social insurance, and return unused funds to the Pension Fund of Ukraine within six months after the end of the relevant period of agricultural work.
{Part one of Article 95 as amended by Law No. 4158-IX of 18.12.2024 }
2. The application of the head of the farm to initiate bankruptcy proceedings shall be submitted to the commercial court with the written consent of all members of the farm.
The application is signed by the head of the farm.
3. The application of the head of the farm to initiate bankruptcy proceedings shall be accompanied by documents containing information on:
composition and value of farm property;
the composition and value of property owned by members of the farm on the right of ownership;
the amount of income that can be received by a farm after the end of the relevant period of agricultural work.
The specified documents are attached by the head of the farm to the response to the application filed by the creditor to initiate bankruptcy proceedings.
4. The head of the farm may, within two months from the date of acceptance by the commercial court of the application to initiate proceedings in the bankruptcy case of the farm, submit to the commercial court a plan for restoring the solvency of the farm.
5. If the implementation of measures provided for in the plan for restoring the solvency of the farm will allow the farm, in particular at the expense of income that may be received after the end of the relevant period of agricultural work, to repay claims for monetary obligations, the commercial court shall introduce a procedure for disposing of the farm's property.
The commercial court issues a ruling on the introduction of a procedure for disposing of the property of a farm.
6. The procedure for disposing of farm property shall be introduced for the period of the end of the relevant period of agricultural work, taking into account the time required for the sale of grown (produced and processed) agricultural products. The specified period may not exceed 15 months.
7. To conduct the procedure for disposing of the property of a farm, the commercial court shall appoint a property administrator in accordance with the procedure established by this Code.
8. The procedure for disposing of the property of a farm may be terminated early by the commercial court upon application by the administrator of the property or any of the creditors in the event of:
failure to implement measures provided for in the farm solvency restoration plan;
the presence of other circumstances indicating the impossibility of restoring the solvency of the farm.
After the early termination of the procedure for disposing of the farm's property, the commercial court declares the farm bankrupt and opens liquidation proceedings.
9. In the event that a commercial court declares a farm bankrupt and initiates liquidation proceedings, the liquidation estate of the farm shall include real estate that is jointly owned by the members of the farm, including plantations, farm and other buildings, land reclamation and other structures, productive and working livestock, poultry, agricultural and other machinery and equipment, vehicles, inventory, and other property purchased for the farm with the common funds of its members, as well as the right to lease a land plot and other property rights that belong to the farm and have a monetary value.
10. In the event of bankruptcy of a farm, the land plot provided to the farm for temporary use, including under lease terms, shall be used in accordance with the Land Code of Ukraine .
11. Property owned by the head and members of the farm on the right of private ownership, as well as other property for which it is proven that it was acquired with income that is not in the common ownership of the members of the farm, shall not be included in the liquidation estate.
12. Real estate, as well as property rights to real estate, which are included in the liquidation estate of a farm, may be sold only at an auction, the mandatory conditions of which are the preservation of the intended purpose of the agricultural objects being sold.
13. From the date of adoption of the resolution declaring the farm bankrupt and initiating the liquidation procedure, the farm's activities shall cease.
14. The Commercial Court shall send a copy of the resolution declaring the farm bankrupt to the body that carried out the state registration of the farm and to the local government body at the location of the farm.
Article 96. Peculiarities of bankruptcy of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state↑
1. The debtor is obliged to provide the commercial court with evidence confirming the debtor's affiliation with state-owned enterprises or business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state.
2. The Cabinet of Ministers of Ukraine shall take measures to prevent the bankruptcy of state-owned enterprises and business companies in whose authorized capital more than 50 percent of the shares (shares) belong to the state, determine the optimal ways to restore their solvency and coordinate the actions of the relevant executive authorities.
3. Executive authorities shall make decisions regarding:
the feasibility of providing state support to insolvent enterprises;
development of measures aimed at ensuring the protection of the interests of the state and choosing the optimal ways of restructuring and repaying debt obligations;
conducting an analysis of the debtor's financial condition, its rehabilitation and approval of the rehabilitation plan;
the feasibility of excluding the relevant business entities from the list of enterprises that are objects of state property rights that are not subject to privatization, and applying the rehabilitation or liquidation procedure to them.
4. State-owned enterprises and business companies in whose authorized capital more than 50 percent of the shares (shares) belong to the state shall submit for consideration by creditors a rehabilitation plan agreed with the body (entity) authorized to manage state property.
{Part Four of Article 96 as amended by Law No. 145-IX of 02.10.2019 }
5. In order to prevent bankruptcy of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, a guarantee may be applied.
6. The initiation of bankruptcy proceedings at the request of the debtor shall not be grounds for terminating the powers of the body authorized to manage the debtor's property to manage the relevant state property.
7. If the debtor is a state-owned enterprise or a business partnership in whose authorized capital more than 50 percent of the shares (shares) belong to the state, the commercial court shall involve representatives of the body authorized to manage state property in the bankruptcy case, with a notification of the initiation of proceedings in the bankruptcy case of such an enterprise.
8. In the event of the initiation of bankruptcy proceedings against a state-owned enterprise or a business partnership in which more than 50 percent of the shares (shares) belong to the state, representatives of the body authorized to manage state property may participate in the creditors' meeting and the work of the creditors' committee with the right to an advisory vote.
9. Termination, extension of powers and removal from duty of rehabilitation managers, liquidators of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of shares (interests) belong to the state, shall be carried out by a commercial court if there are grounds and in accordance with the procedure established by this Code.
An arbitration manager in a bankruptcy case of state-owned enterprises and business companies in whose authorized capital more than 50 percent of the shares (parts) belong to the state must pass an exam according to the training program for arbitration managers in bankruptcy cases of state-owned enterprises and business companies in whose authorized capital more than 50 percent of the shares (parts) belong to the state.
{Part nine of Article 96 is supplemented by paragraph two in accordance with Law No. 2971-IX of March 20, 2023 }
10. The provisions of this article do not apply to legal entities - enterprises that are objects of property of the Autonomous Republic of Crimea and municipal property.
11. During the rehabilitation procedure of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, their real estate may be alienated only in cases provided for by the rehabilitation plan.
{Article 96 is supplemented with a new part in accordance with Law No. 145-IX of 02.10.2019 }
12. The initial price of property, property rights of state-owned enterprises or business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, is determined in accordance with the Law of Ukraine "On the Valuation of Property, Property Rights and Professional Valuation Activities in Ukraine".
13. The state privatization body, within one month from the date of recognition of the auction for the sale of the privatization object (a single property complex of a state enterprise or a block of shares (shares) of a business entity in the authorized capital of which the share of state ownership is more than 50 percent), held in accordance with part eleven of Article 15 of the Law of Ukraine "On Privatization of State and Municipal Property", as not having taken place, if there are grounds specified by this Code for initiating bankruptcy proceedings:
makes a decision to terminate the privatization of a business entity, the single property complex or block of shares (shares) of which is the object of privatization;
applies to the commercial court with an application to initiate proceedings in a bankruptcy case against a business entity whose single property complex or block of shares (shares) is the object of privatization.
{Article 96 is supplemented with a new part in accordance with Law No. 2971-IX of 20.03.2023 }
14. The sale of property of state-owned enterprises and business associations, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, shall primarily be carried out by selling the debtor's property as a single property complex. Such a single property complex shall include land plots, buildings, structures, equipment, inventory, the right to a trademark or other designation, as well as rights to land plots. The sale of the debtor's property as a single property complex shall be carried out at an auction in accordance with this Code.
The terms of sale of the bankrupt's property as a single property complex, defined by Article 75 of this Code, shall be additionally agreed upon by the arbitration manager with the body authorized to manage state property.
The body authorized to manage state property is obliged to consider the conditions of the sale of property within 30 days and make one of the decisions specified in part six of Article 75 of this Code.
The first auction for the sale of property of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, as a single property complex, shall be held without the possibility of reducing the initial price. The initial price of the re-auction and the second re-auction for the sale of property of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, as a single property complex shall be determined in accordance with the procedure provided for in Article 79 of this Code. The re-auction shall be held without the possibility of reducing the initial price. The second re-auction shall be held with the possibility of reducing the initial price.
In the event of the completion of the second repeated auction for the sale of the bankrupt's property as a single property complex without determining the winner, the further sale of the property of state-owned enterprises and business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state, shall be carried out in separate lots in accordance with Articles 75 , 79 and 80 of this Code.
{Article 96 is supplemented with a new part in accordance with Law No. 2971-IX of 20.03.2023 }
15. Copies of court decisions in proceedings on bankruptcy of state-owned enterprises or business companies, in the authorized capital of which more than 50 percent of the shares (shares) belong to the state or on the balance sheet of which there are objects of state property that, in the process of privatization (corporatization), were not included in the authorized capitals of these enterprises, except for other participants, shall be sent to the body authorized to manage state property.
16. In order to implement measures to prepare enterprises for transformation and free transfer of property in accordance with the procedure provided for by the Law of Ukraine "On the Peculiarities of Reforming Enterprises of the Defense-Industrial Complex of State Ownership", the property of a state enterprise that is a participant in the State Concern "Ukroboronprom", a business company defined in Part One of Article 1 of the Law of Ukraine "On the Peculiarities of Reforming Enterprises of the Defense-Industrial Complex of State Ownership", in respect of which bankruptcy proceedings have been initiated, shall be replaced by other property, the market value of which is not less than the market value of the property in respect of which an encumbrance has been established regarding the disposition and which is being replaced, including property transferred to the relevant business entity (debtor) by decision of the authorized management entity. The economic court's decision shall be made on the basis of a petition by the debtor, authorized management entity or management entity. In accordance with the decision of the commercial court regarding the debtor's property that is being replaced, measures to secure creditors' claims, including property seizures and other encumbrances regarding the disposal of such property, shall be canceled, and such property, by decision of the authorized management entity, may be transferred by the debtor in accordance with the procedure provided for by the Law of Ukraine "On the Peculiarities of Reforming State-Owned Enterprises of the Defense Industrial Complex". The debtor may satisfy the creditors' claims at the expense of other property transferred by the authorized management entity.
{Article 96 is supplemented with a new part in accordance with Law No. 1630-IX of 13.07.2021 }
Chapter VIII. PROCEEDINGS IN BANKRUPTCY CASES RELATED TO FOREIGN BANKRUPTCY PROCEEDINGS↑
Article 97. Application of bankruptcy procedures related to foreign bankruptcy proceedings↑
1. For the purposes of this section, the following terms are used:
foreign bankruptcy procedure - bankruptcy proceedings conducted in a foreign state in accordance with the law of that state;
foreign court - a state or other authorized body of a foreign state competent to conduct proceedings in bankruptcy cases;
Manager of foreign bankruptcy proceedings - a person appointed by a decision of a foreign court within the framework of a foreign bankruptcy procedure for a certain period of time and authorized to manage the economic activities or reorganization or liquidation of the debtor, to perform actions in other states.
2. Bankruptcy procedures related to foreign proceedings specified in this section, unless otherwise provided for by this Code or an international treaty of Ukraine, the binding consent of which has been granted by the Verkhovna Rada of Ukraine, shall be applied on the principle of reciprocity if:
an application for recognition of foreign proceedings and for the provision of legal assistance has been submitted to the commercial court in which the bankruptcy case is being processed by the manager of the foreign bankruptcy procedure, or an application has been received from a foreign court for cooperation in connection with foreign proceedings in the bankruptcy case;
{Paragraph two of part two of Article 97 as amended by Law No. 2971-IX of March 20, 2023 }
the commercial court, in the proceedings of which the bankruptcy case is pending, has sent an appeal or the arbitration manager has filed an application with a foreign court for recognition of the proceedings opened in accordance with this Code, as well as for the provision of legal assistance and cooperation in connection with the proceedings in the bankruptcy case opened in accordance with this Code;
An application by the manager of a foreign bankruptcy proceeding for recognition of the foreign bankruptcy proceeding, as well as for the provision of legal assistance and cooperation in connection with the foreign bankruptcy proceeding in a bankruptcy case, was filed with the commercial court.
The provisions of this section shall not apply to bankruptcy proceedings of banks and other financial institutions.
{Part three of Article 97 was excluded on the basis of Law No. 2971-IX of 03/20/2023 }
4. The Commercial Court shall refuse to apply international aspects of bankruptcy if their application contradicts public order, sovereignty and fundamental principles of the legislation of Ukraine.
5. The commercial court has the right to refuse to apply the provisions of this section if the relevant foreign court has refused to cooperate with the commercial court or the arbitration manager of Ukraine.
6. During bankruptcy proceedings, the commercial court proceeds from the fact that:
proceedings in the bankruptcy case of a debtor who is established and operates in accordance with the legislation of Ukraine, is located in the territory of Ukraine, is the main proceedings in relation to any other foreign proceedings;
proceedings in the bankruptcy case of a debtor - a permanent representative office of a Ukrainian business entity in a foreign state are derivative foreign proceedings in relation to the main proceedings in Ukraine;
proceedings in the bankruptcy case of a debtor who is established and operates in accordance with the law of a foreign state, has a location outside Ukraine, is opened in a foreign state, is the main foreign proceedings;
Proceedings in a case of bankruptcy of a debtor - a permanent representative office in a foreign state of a business entity, which is established and operates in accordance with the law of a foreign state and is located outside of Ukraine, are derivative foreign proceedings.
7. Recognition of foreign bankruptcy proceedings includes recognition of court decisions made by a foreign court during bankruptcy proceedings, as well as decisions on the appointment, dismissal or replacement of a manager of foreign bankruptcy proceedings, decisions on the progress of foreign proceedings, their suspension or termination.
{Part seven of Article 97 as amended by Law No. 2971-IX of March 20, 2023 }
Article 98. Grounds for providing legal assistance and cooperation↑
1. A commercial court or an arbitration manager acting on the basis of this Code shall be obliged to provide assistance to the manager of a foreign bankruptcy procedure or to cooperate with a foreign court in accordance with this Code and international treaties of Ukraine, the binding nature of which has been approved by the Verkhovna Rada of Ukraine.
Article 99. Manager of a foreign bankruptcy proceeding↑
1. The manager of a foreign bankruptcy procedure must confirm his/her powers in accordance with the procedure established by this Code in order to exercise his/her rights and obligations in Ukraine.
2. The manager of a foreign bankruptcy procedure has the powers provided for by the relevant international treaty of Ukraine, the binding consent of which has been granted by the Verkhovna Rada of Ukraine.
3. When exercising his powers in Ukraine, the manager of a foreign bankruptcy proceeding is obliged to act in good faith and reasonably.
Failure or improper performance of the duties assigned to the manager of a foreign bankruptcy proceeding in accordance with this Code, which has caused significant damage to creditors or the debtor, may be grounds for his removal from the proceedings, which the commercial court shall issue a ruling on, which shall be sent to the person represented by the manager of a foreign bankruptcy proceeding, as well as for holding him liable in accordance with this Code.
4. The manager of a foreign bankruptcy procedure is obliged to attach to the applications and documents their translation into Ukrainian, and during the procedures in the commercial court to use the services of a translator at his own expense.
Article 100. Application for recognition of foreign bankruptcy proceedings and the administrator of foreign bankruptcy proceedings↑
1. The manager of a foreign bankruptcy proceeding shall submit to the commercial court conducting the bankruptcy proceedings a written application for recognition of the foreign bankruptcy proceeding within the framework of which he was appointed, before such court makes a decision on the merits (approval of the rehabilitation plan, liquidation). The application for recognition of a foreign bankruptcy proceeding shall be drawn up in the state (official) language of the state in which the foreign bankruptcy proceedings are conducted. Its translation into Ukrainian shall be attached to the application.
In the absence of open bankruptcy proceedings in the commercial courts of Ukraine, an application for recognition of a foreign bankruptcy procedure is filed in accordance with the rules of jurisdiction established by the Commercial Procedural Code of Ukraine .
{Part one of Article 100 is supplemented with a new paragraph in accordance with Law No. 2971-IX of 03/20/2023 }
An application for recognition of a foreign bankruptcy procedure, unless otherwise provided for by an international treaty of Ukraine, must contain:
the name of the commercial court to which it is filed;
the name (title) of the foreign bankruptcy administrator who files the application, indicating his place of residence (stay) or location;
the name (title) of the debtor, indication of his place of residence (stay) or location or location of his property in Ukraine;
content and reasons for submitting the application.
2. If an international treaty of Ukraine does not specify the list of documents attached to the application for recognition of a foreign bankruptcy procedure, or in the absence of such a treaty, the following shall be attached to the application:
a certified copy of the decision of a foreign court on the opening of foreign bankruptcy proceedings and the appointment of a manager of foreign bankruptcy proceedings;
a document confirming the entry into force of a foreign court decision (unless this is stated in the decision itself);
a document certifying that the debtor, in respect of whom a foreign court has made a decision to open foreign bankruptcy proceedings and who did not participate in the court proceedings, was duly informed of the time and place of the hearing;
a document certifying the authority of the manager of the foreign bankruptcy procedure;
information about other foreign bankruptcy proceedings concerning the debtor, which are known to the manager of the foreign bankruptcy proceedings;
duly certified translation of the documents specified in this part into Ukrainian.
3. The commercial court, having established that the application and the documents attached to it have not been drawn up in accordance with the requirements provided for in this article, or that all the necessary documents have not been attached to the application, shall leave the application without consideration and return it, together with the attached documents, to the manager of the foreign bankruptcy procedure no later than on the fifth day from the date of its receipt.
The return of the application does not deprive the manager of the foreign bankruptcy procedure of the right to re-submit it to the commercial court after eliminating the reasons for the return.
4. The commercial court, having established that the application and the documents attached to it are drawn up in accordance with the established requirements, shall issue a ruling on accepting the application for consideration no later than on the third day from the date of receipt of the application.
5. Foreign official documents submitted to the commercial court in accordance with part two of this article shall be accepted by the court subject to their legalization, unless otherwise provided for by an international treaty of Ukraine.
Article 101. Legal aid that may be provided after filing an application for recognition of foreign bankruptcy proceedings↑
1. From the date of filing an application for recognition of a foreign bankruptcy proceeding and until the relevant ruling is issued, the commercial court, on the basis of a written application by the manager of the foreign bankruptcy proceeding, shall take measures to protect the debtor's assets or the interests of creditors, in particular to ensure the collection of evidence or to request information about the debtor's assets, business transactions, rights, obligations or liability.
2. The commercial court may refuse to provide legal aid under this article if such aid would impede the conduct of the main bankruptcy proceedings in Ukraine.
Article 102. Consideration of an application for recognition of a foreign bankruptcy procedure↑
1. The commercial court shall notify the debtor in writing of the receipt of an application for recognition of a foreign bankruptcy procedure within three days from the date of its receipt and shall establish a thirty-day period for submitting possible objections to the submitted application.
2. After the debtor submits written objections or if no objections are submitted within the established period from the date of notification of the debtor, the judge shall issue a ruling determining the time and place of the court hearing of the application, of which the manager of the foreign bankruptcy procedure and the debtor shall be notified in writing within three days from the date of the ruling.
3. Upon application by the manager of the foreign bankruptcy procedure or the debtor and if there are good reasons, the commercial court may postpone the time of consideration of the application, of which it shall notify the parties.
4. Failure to appear at a court hearing without good reason by the manager of a foreign bankruptcy proceeding, the debtor, or his representatives, who were timely served with a notice of summons to the commercial court, shall not prevent the consideration of the application, unless any of the parties has requested a postponement of its consideration.
5. Having considered the submitted documents and having heard the explanations of the parties, the commercial court shall issue a ruling on the recognition of the foreign bankruptcy procedure or on the refusal to satisfy the application. A copy of the ruling shall be sent by the commercial court to the manager of the foreign bankruptcy procedure and to the debtor within three days from the date of its issuance.
Article 103. Grounds for refusal to grant an application for recognition of a foreign bankruptcy proceeding↑
1. An application for recognition of a foreign bankruptcy procedure shall not be granted in cases provided for by international treaties of Ukraine. If such cases are not provided for by international treaties of Ukraine, the application may be refused if:
the decision of a foreign court to open a foreign bankruptcy proceeding in accordance with the law of the relevant foreign state has not entered into legal force;
the party against whom foreign bankruptcy proceedings have been opened in a bankruptcy case was not properly notified of the proceedings;
the Commercial Court of Ukraine has already issued a ruling on the application for recognition of a foreign bankruptcy procedure on the same grounds, which has entered into legal force;
the foreign bankruptcy procedure concerns a debtor established in accordance with the legislation of Ukraine;
the bankruptcy proceedings in respect of which the application was filed have already been completed in Ukraine;
the deadline established by the legislation of Ukraine for presenting a foreign court decision for enforcement in Ukraine has been missed;
the execution of a foreign court decision is contrary to public order, sovereignty and the basic principles of Ukrainian legislation.
2. If the circumstances that served as the basis for refusing to satisfy the application for recognition of a foreign bankruptcy proceeding have changed, the manager of the foreign bankruptcy proceeding may reapply to the commercial court with a corresponding application.
Article 104. Decision of the commercial court on the recognition of a foreign bankruptcy procedure↑
1. The decision of the commercial court on the recognition of a foreign bankruptcy procedure shall state:
the full name or surname of the debtor against whom bankruptcy proceedings have been opened, his location or place of residence;
the name of the foreign court that opened the bankruptcy proceedings;
full name or surname of the foreign bankruptcy administrator, his/her location or place of residence;
the status of foreign bankruptcy proceedings in accordance with the provisions of this Code.
2. A decision on the recognition of a foreign bankruptcy procedure or on the refusal to satisfy an application for the recognition of a foreign bankruptcy procedure may be appealed in accordance with the procedure and within the terms provided for by the Commercial Procedural Code of Ukraine .
3. A copy of the ruling shall be provided or sent by the commercial court to the manager of the foreign bankruptcy procedure and the debtor within three days from the date of the ruling.
Article 105. Grounds for changing or annulling a decision of a commercial court on the recognition of a foreign bankruptcy procedure↑
1. The grounds for changing or canceling a decision of a commercial court on the recognition of a foreign bankruptcy procedure are the incorrect application of the norms of substantive and procedural law, as well as the change or cessation of the circumstances that the commercial court was guided by when making its decision.
Article 106. Legal aid that may be provided after the recognition of foreign bankruptcy proceedings↑
1. After the recognition of a foreign bankruptcy proceeding, except in cases provided for by this Code, in order to protect the assets of the debtor or the interests of creditors, the commercial court, on the basis of an application by the manager of the foreign bankruptcy proceeding, may provide the following legal assistance:
1) suspension of bankruptcy proceedings or other procedural actions regarding the assets, rights, obligations or liability of the debtor, provided that all necessary measures have been taken to guarantee the satisfaction of the interests of creditors in Ukraine;
2) suspension of the right to dispose of any assets of the debtor;
3) continuation of the provision of legal aid provided in accordance with this Code;
4) provision of additional legal assistance in accordance with the legislation or international treaties of Ukraine.
2. The provision of legal aid shall be terminated from the date of inclusion of creditors' claims under foreign proceedings in the register of creditors' claims approved in proceedings in a case of bankruptcy of the debtor opened in accordance with this Code, as the commercial court shall issue a corresponding ruling.
3. Amendments to the debtor's rehabilitation plan after the commercial court recognizes foreign proceedings shall be made in accordance with the provisions of this Code.
Article 107. Application for legal aid↑
1. An application for legal aid shall be drawn up in the state (official) language of the state on whose behalf the administrator of the foreign bankruptcy procedure acts. Its translation into Ukrainian shall be attached to the application.
An application for legal aid shall be submitted in writing and must contain:
name of the commercial court to which the application is submitted;
the name (title) of the foreign bankruptcy administrator who files the application, indicating his place of residence (stay) or location;
the name of the case in which the application was filed;
the essence of the request and the information necessary for its execution, including information on the persons who may be affected by the legal aid measures;
the need to ensure the confidentiality of the application and information obtained during the provision of legal aid;
a list of procedural actions to be taken.
2. When considering an application for legal aid and in the event of a decision to provide such aid, the commercial court shall apply the legislation of Ukraine.
3. Based on the results of consideration of the application for legal aid, the commercial court shall issue a ruling, a copy of which shall be sent to the manager of the foreign bankruptcy procedure within three days from the date of issuing the ruling.
Article 108. Protection of property rights of creditors and other interested persons↑
1. When making a decision to grant legal aid, to refuse to satisfy an application or to terminate the provision of legal aid, the commercial court must ensure that the property rights and other property rights of creditors and other interested persons, including the debtor, will not be violated.
2. The commercial court, based on the application of the manager of the foreign bankruptcy procedure, may change the scope or terminate the provision of legal aid.
Article 109. Cooperation with foreign courts and foreign bankruptcy administrators↑
1. In bankruptcy proceedings that are principal or derivative to other foreign proceedings:
the commercial court, on the principle of reciprocity, must cooperate with foreign courts or managers of foreign bankruptcy proceedings by providing court instructions to the arbitration manager;
the arbitration manager has the right, in the performance of his functions, to cooperate with foreign courts and managers of foreign bankruptcy proceedings;
The arbitration manager is obliged to immediately notify the commercial court in writing of his cooperation with a foreign court or a manager of a foreign bankruptcy procedure.
2. Cooperation with foreign courts and managers of foreign bankruptcy proceedings is carried out through:
1) committing acts in a foreign state;
2) transfer of information to a foreign court or administrator of a foreign bankruptcy proceeding, unless the transfer of such information is prohibited by law;
3) coordination of actions to manage the debtor's assets and business activities;
4) coordination of actions to provide legal assistance during bankruptcy proceedings concerning the same debtor.
3. If actions taken in accordance with part two of this Article may harm the interests of creditors or the debtor in proceedings conducted in accordance with this Code, the commercial court, on its own initiative or upon application by any of the parties, may suspend or prohibit the relevant actions, and shall issue a ruling on this.
Article 110. Coordination of the provision of legal aid during the simultaneous conduct of bankruptcy proceedings opened in accordance with this Code and foreign bankruptcy proceedings↑
1. If a foreign bankruptcy procedure and bankruptcy proceedings opened in accordance with this Code are interrelated, the commercial court shall provide legal assistance, observing the following requirements:
if an application for recognition of a foreign bankruptcy procedure is filed after the opening of bankruptcy proceedings in accordance with this Code, the provision of legal aid in accordance with the requirements of this Code shall not exclude the possibility of satisfying the claims of creditors of Ukraine;
If bankruptcy proceedings are opened in accordance with this Code after the recognition or filing of an application for recognition of a foreign bankruptcy proceeding, legal aid provided in accordance with the requirements of this Code shall be reviewed, modified or terminated if it is incompatible with the bankruptcy proceedings opened in accordance with this Code.
Article 111. Provision of legal aid in the event of multiple foreign bankruptcy proceedings↑
1. In the event of recognition of several foreign bankruptcy proceedings in respect of the same debtor, the commercial court shall provide legal aid, observing the following requirements:
the provision of legal aid to the administrator of a foreign bankruptcy proceeding that is derivative must be coordinated with the provision of legal aid during the main foreign bankruptcy proceeding;
If, after the recognition of a derivative foreign bankruptcy proceeding, another derivative foreign bankruptcy proceeding is recognized, the commercial court shall grant, modify or terminate the provision of legal aid for the purpose of coordinating such proceedings.
Article 112. Payments in the framework of proceedings conducted simultaneously↑
1. A creditor who has received partial compensation for his claim in a foreign bankruptcy proceeding may not receive compensation for the same claim in bankruptcy proceedings opened in accordance with this Code in respect of the same debtor, as long as the compensation to other creditors of the same priority is proportionately less than the compensation already received by such creditor.
BOOK FIVE. RESTORATION OF THE PAYMENT CAPACITY OF AN INDIVIDUAL PERSON
Section I. GENERAL PROVISIONS↑
Article 113. Peculiarities of proceedings in cases of insolvency of individuals↑
1. Proceedings in cases of insolvency of a debtor - an individual, an individual - an entrepreneur shall be carried out in accordance with the procedure established by this Code for legal entities, taking into account the features established by this Book.
Article 114. Arbitration manager in cases of insolvency of an individual↑
1. The arbitration manager in a case of insolvency of an individual shall exercise all the rights of an arbitration manager in accordance with the legislation, including the right to:
{Paragraph 1 of Part One of Article 114 was excluded on the basis of Law No. 3249-IX of 13.07.2023 }
2) receive information from state registers, including from credit bureaus, in accordance with the procedure prescribed by law;
3) inspect the debtor's property.
{Clause 4 of part one of Article 114 was excluded on the basis of Law No. 3249-IX of 13.07.2023 }
2. The arbitration manager in a case of insolvency of an individual is obliged to:
1) consider applications of creditors with monetary claims against the debtor, received in accordance with the procedure established by this Code;
2) notify creditors of the results of the consideration of their claims;
3) draw up and, in cases provided for by this Code, maintain a register of creditors' claims;
4) convene creditors' meetings and organize their holding;
5) organize the identification and preparation of an inventory of the debtor's property (inventory), determine its value;
6) form a liquidation estate;
7) participate in the development of a plan for restructuring the debtor's debts, ensure its consideration by the creditors' meeting and submission for approval to the commercial court;
8) open a special account for settlements with creditors;
9) repay creditors' claims in accordance with the priority in the procedure for repaying the debtor's debts, and if the restructuring plan provides for the sale of the debtor's property - in accordance with the restructuring plan at the expense of funds received from the sale of such property;
10) if the restructuring plan provides for the sale of the debtor's property, report to the commercial court and creditors' meetings on the results of the sale of the debtor's property within three business days from the date of such sale;
11) perform functions related to the management and disposal of the debtor's property;
12) exercise other powers in accordance with the legislation.
{Part two of Article 114 as amended by Law No. 2971-IX of 03/20/2023 }
3. In the event of the removal of the arbitration manager from the exercise of his powers, banking institutions in which a special account for settlements with creditors has been opened are obliged to transfer funds from such account to the account of a new arbitration manager appointed by the commercial court to exercise the powers of the restructuring manager or the manager of the sale of the debtor's property.
The bank transfers funds to a special account for settlements with creditors opened by the new arbitration manager based on the payment claim of such arbitration manager.
4. Creditors have the right to establish additional remuneration for the arbitration manager at the expense of their own funds.
5. To ensure the performance of the powers of the restructuring manager and/or the manager of the sale of the debtor's property, the arbitration manager may engage other persons and specialized organizations on a contractual basis with payment for their activities at the expense of the debtor, and in the absence of funds from the debtor - on the basis of a decision of the creditors' meeting at the expense of the creditors. Permission to engage such persons is granted by the commercial court on the basis of a motivated application by the arbitration manager on the need for their participation in the case, which indicates the amount of payment for their services.
Article 115. Grounds for opening insolvency proceedings↑
1. Proceedings in a case of insolvency of a debtor - an individual or an individual - an entrepreneur may be initiated only upon the application of the debtor.
2. The debtor has the right to apply to the commercial court with an application to initiate insolvency proceedings if:
{Paragraph 1 of Part Two of Article 115 was excluded pursuant to Law No. 2971-IX of March 20, 2023 }
2) the debtor has stopped repaying loans or making other scheduled payments in the amount of more than 50 percent of the monthly payments for each of the loan and other obligations for two months;
3) the debtor does not have property that can be seized, and the measures taken by the executor in accordance with the Law of Ukraine "On Enforcement Proceedings" to search for such property were ineffective;
{Clause 3 of Part Two of Article 115 as amended by Law No. 2971-IX of 03/20/2023 }
4) there are signs of a threat of insolvency.
{Clause 4 of Part Two of Article 115 as amended by Law No. 3985-IX of September 19, 2024 }
3. Monetary claims, including those for the payment of taxes, fees (mandatory payments), do not include penalties (fines, interest) and other financial sanctions.
Section II. OPENING OF INSOLVENCY PROCEEDINGS↑
Article 116. Application for the opening of insolvency proceedings↑
1. An application for the initiation of insolvency proceedings shall be filed by the debtor if there are grounds provided for by this Code.
2. The application for the opening of insolvency proceedings shall state:
1) the name of the commercial court to which the application is submitted;
2) the debtor's name, his place of residence, the registration number of the taxpayer's registration card and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have officially notified the relevant regulatory authority about this and have a mark in their passport), the debtor's communication number, his e-mail address (if available);
3) a statement of the circumstances that gave rise to the application to court;
4) a list of documents attached to the application.
3. The following shall be attached to the application for the initiation of insolvency proceedings:
1) a power of attorney or other document certifying the authority of the representative, if the application is signed by the representative;
2) documents confirming the presence (absence) of the debtor's status as an individual entrepreneur;
3) a specified list of creditors and debtors indicating the total amount of monetary claims of creditors (debtors), as well as for each creditor (debtor) - its name or business name, its location or place of residence, identification code of the legal entity or registration number of the taxpayer's registration card and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have officially notified the relevant regulatory authority about this and have a mark in their passport), the amount of monetary claims (the total amount of debt, debt under the main obligation and the amount of the penalty (fine, penalty) separately), the grounds for the occurrence of obligations, as well as the term for their fulfillment in accordance with the law or contract;
4) a description of the debtor's property owned by him, indicating the location or place of storage of the property;
5) copies of documents confirming the debtor's ownership of the property;
6) a list of property that is pledged (mortgaged) or otherwise encumbered, its location, value, as well as information about each creditor in whose favor the debtor's property is encumbered - name or title, location or place of residence, identification code of the legal entity or registration number of the taxpayer's registration card and passport number (for individuals who, due to their religious beliefs, refuse to accept the registration number of the taxpayer's registration card and have officially notified the relevant regulatory authority about this and have a mark in their passport), the amount of monetary claims, the basis for the occurrence of obligations, as well as the term for their performance in accordance with the law or contract;
7) copies of documents on transactions made by the debtor (within a year before the date of filing an application to open insolvency proceedings) regarding real estate, securities, shares in the authorized capital, vehicles and agreements belonging to him for an amount of at least 30 times the minimum wage;
8) information about all existing accounts/electronic wallets of the debtor (including deposit accounts) opened in banks and other financial and credit institutions, non-bank payment service providers, electronic money issuers in Ukraine and abroad, their details, indicating the amounts of funds in such accounts, electronic wallets;
{Clause 8 of Part Three of Article 116 as amended by Law No. 2888-IX of 12.01.2023 }
9) copy of employment record book (if available);
10) information about the debtor's employer(s);
11) a declaration of the debtor's financial status in a form approved by the state bankruptcy authority;
12) evidence of the debtor's advance payment to the court's deposit account of the remuneration to the restructuring manager for three months of exercising his powers;
13) information on the presence (absence) of an outstanding conviction for economic crimes;
14) other documents confirming the existence of the grounds specified in Article 115 of this Code.
4. Together with the application for the opening of insolvency proceedings, the debtor is obliged to submit proposals for debt restructuring (draft debt restructuring plan).
5. The debtor shall submit a declaration of assets for the three years (each year separately) preceding the year of filing the application to open insolvency proceedings with the court. The debtor shall also submit a declaration of assets for the year in which the application to open insolvency proceedings is filed, as of the first day of the month preceding the month of filing the application to the court.
{Paragraph one of part five of Article 116 as amended by Law No. 2971-IX of 03/20/2023 }
The debtor's family members include persons who are married to the debtor (including if the marriage was dissolved within three years prior to the date of filing the declaration), as well as their children, including those of legal age, parents, persons under the guardianship or care of the debtor, other persons who live with him, are connected by a common life, have mutual rights and obligations (except for persons whose mutual rights and obligations with the debtor are not of a family nature), including persons who live together but are not married.
Article 117. Acceptance of an application to initiate insolvency proceedings↑
1. In the absence of grounds for refusing to accept an application to initiate insolvency proceedings or for returning such an application, the commercial court shall, no later than five days from the date of receipt of the application, issue a ruling on accepting the application for consideration, which shall state:
1) the date of the preparatory meeting, which must be held no later than 15 working days from the date of the resolution;
2) surname, first name and patronymic of the arbitration managers determined by automated selection using the Unified Judicial Information and Telecommunications System from among the persons entered in the Unified Register of Arbitration Managers of Ukraine for appointment as restructuring managers.
{Clause 2 of Part One of Article 117 as amended by Law No. 2971-IX of March 20, 2023 }
2. By a ruling on accepting an application for the initiation of proceedings in a case of insolvency of a debtor for consideration, the commercial court has the right to decide on the issue of:
1) the obligation of the applicant, the debtor and other persons to submit to the court additional information necessary to resolve the issue of opening insolvency proceedings;
2) taking measures to secure creditors' claims by prohibiting the debtor from alienating property.
3. The decision on acceptance of the application for opening proceedings in a case of insolvency of the debtor is sent to the parties, the arbitration manager determined by automated selection, to the state enforcement service body, the private enforcement agent with whom the enforcement proceedings are being carried out, to the supervisory body determined by the Tax Code of Ukraine at the place of residence of the debtor.
{Part Three of Article 117 as amended by Law No. 2971-IX of March 20, 2023 }
Article 118. Securing creditors’ claims↑
1. The commercial court has the right, upon a reasoned request of the parties to an insolvency case or on its own initiative, to take measures to secure the claims of creditors.
Measures to secure creditors' claims shall be taken by the commercial court in accordance with the procedure and under the conditions specified in Book Three of this Code.
2. Measures to secure creditors' claims include, in particular:
prohibition of the debtor from concluding transactions (contracts);
the debtor's obligation to transfer property and other valuables for safekeeping to third parties;
committing or refraining from committing certain actions;
prohibition on the debtor from disposing of his real estate and securities;
imposing an arrest on specific property of the debtor;
other measures to preserve the debtor's property;
prohibition of the debtor from traveling abroad.
Article 119. Opening of insolvency proceedings↑
1. At the preparatory meeting, the commercial court shall consider the submitted documents, determine whether there are grounds for initiating insolvency proceedings, and resolve other issues related to the consideration of the application.
2. The preparatory meeting shall be held in accordance with the procedure provided for by this Code.
3. Following the results of the preparatory meeting, the commercial court shall issue a ruling on the initiation of insolvency proceedings or on the refusal to initiate insolvency proceedings.
4. The Commercial Court shall issue a ruling refusing to initiate insolvency proceedings if:
1) there are no grounds for initiating insolvency proceedings;
2) the debtor has fulfilled his obligations to the creditor(s) in full before the preparatory court hearing;
3) the debtor has been held administratively or criminally liable for unlawful actions related to insolvency;
4) the debtor has been declared bankrupt within the previous five years.
5. In the ruling on the initiation of proceedings in a case of insolvency of the debtor, the commercial court shall note:
1) initiation of proceedings in a case of insolvency of the debtor;
2) introduction of a procedure for restructuring the debtor's debts;
3) introduction of a moratorium on satisfying creditors' claims;
4) appointment of a restructuring manager;
5) taking measures to secure creditors' claims;
6) the deadline for the arbitration manager to submit information to the commercial court on the results of the consideration of creditors' claims, which may not exceed 30 days from the date of the preparatory court session;
7) the identification by the arbitration manager, the drawing up of a description of the debtor's property (inventory) and the determination of its value;
8) the period for preparing and submitting to the commercial court a plan for restructuring the debtor's debts, which may not exceed three months from the date of the preparatory court session;
9) the obligation of the supervisory authority, determined by the Tax Code of Ukraine , to provide the restructuring manager and the court with information about the income of the debtor and his family members and about the property declared by such persons when crossing the border;
10) the obligation of the state border service body to provide the restructuring manager and the court with information about the crossing of the state border by the debtor and his family members over the past three years;
11) the obligation of banks, non-bank payment service providers, and electronic money issuers to provide the restructuring manager and the court with information about the balance of funds in the debtor's accounts/electronic wallets.
{Clause 11 of Part Five of Article 119 as amended by Law No. 2888-IX of 12.01.2023 }
6. In order to identify all creditors, an official announcement of the opening of proceedings in a case of insolvency of the debtor shall be made in accordance with the procedure specified in this Code.
7. The decision to initiate insolvency proceedings shall be sent to the debtor no later than three days from the date of its issuance to the supervisory authority specified by the Tax Code of Ukraine and other authorities that exercise control over the correctness and timeliness of the payment of taxes and fees (mandatory payments), insurance contributions for mandatory state pension and other social insurance, to local courts of general jurisdiction and the state enforcement service body, to the private bailiff who is conducting enforcement proceedings, to the state border service body, the state bankruptcy body, as well as to other participants in the case and persons who have the right to participate in such a case.
In the event of taking measures to secure creditors' claims, a copy of the resolution is also sent to institutions that keep records of real estate and movable property, state automobile inspection bodies at the debtor's place of residence/stay, banking institutions, non-bank payment service providers that service the debtor's accounts, electronic money issuers that have electronic wallets belonging to the debtor, depository institutions that keep records of rights to securities belonging to the debtor, as well as state border service bodies.
{Paragraph two of part seven of Article 119 as amended by Law No. 2888-IX of 12.01.2023 ; as amended by Law No. 2971-IX of 20.03.2023 }
8. The decision to initiate proceedings in a case of insolvency of the debtor shall enter into legal force from the moment of its issuance.
Article 120. Consequences of opening proceedings in a case of insolvency of a debtor↑
1. From the moment of the opening of proceedings in the case of insolvency of the debtor:
1) creditors may submit claims against the debtor and satisfy such claims only within the framework of insolvency proceedings and in accordance with the procedure provided for by this Code;
2) the seizure of the debtor's property and other restrictions on the debtor's disposal of his property may be applied exclusively by the commercial court within the framework of insolvency proceedings, and previously imposed seizures and restrictions may be lifted on the basis of a decision of the commercial court;
3) the accrual of fines and other financial sanctions, as well as interest on the debtor's obligations, shall be suspended;
4) the exercise of the debtor's corporate rights and the realization of property rights shall take place taking into account the restrictions established by this Code;
5) a moratorium is introduced on satisfying creditors' claims;
6) the deadline for the fulfillment of all monetary obligations of the debtor is deemed to have arrived;
7) any alienation and disposal of the debtor's property shall be carried out exclusively in accordance with the procedure provided for by this Code.
2. The commercial court, at the request of the arbitration manager or on its own initiative, may decide to temporarily prohibit the debtor from traveling abroad without the permission of the court for the period of insolvency proceedings, if the debtor takes actions aimed at obstructing the conduct of procedures provided for in this Code in relation to him.
Article 121. Moratorium on satisfaction of creditors' claims↑
1. A moratorium on the satisfaction of creditors' claims shall be imposed from the moment of the opening of insolvency proceedings. The decision to open insolvency proceedings shall be the basis for suspending enforcement actions against the debtor. The restructuring manager shall notify the relevant state enforcement service body or private enforcement agent, who is conducting enforcement proceedings, of the introduction of a moratorium.
{Part one of Article 121 as amended by Law No. 2971-IX of 20.03.2023 }
2. During the moratorium on satisfying creditors' claims:
1) the debtor's performance of monetary obligations, including obligations to pay taxes and fees (mandatory payments), the due date for which was reached before the opening of insolvency proceedings, is suspended;
2) the collection of debts from the debtor under all enforcement documents is suspended, except for enforcement documents on claims for the collection of alimony, compensation for damage caused by injury, other damage to health or death of an individual, as well as except for cases where the enforcement proceedings are at the stage of distribution of sums of money collected from the debtor, including those received from the sale of the debtor's property or where the debtor's property, which is the subject of security, is at the stage of sale from the moment of publication of information about the sale, as well as in the case of enforcement of decisions in non-property disputes;
{Clause 2 of Part Two of Article 121 as amended by Law No. 2971-IX of March 20, 2023 ; as amended by Law No. 3985-IX of September 19, 2024 }
3) no penalty (fine, penalty) is charged, no other financial sanctions are applied for failure to fulfill or improper fulfillment of obligations to satisfy claims subject to the moratorium;
4) the limitation period for claims against the debtor is suspended;
5) the inflation index is not applied for the entire period of delay in fulfilling the debtor's monetary obligations.
3. The moratorium does not apply to:
1) compensation for damage caused by injury, other damage to health or death of an individual;
2) payment and collection of alimony;
3) fulfillment of requirements under non-property enforcement documents that oblige the debtor to perform certain actions or refrain from performing them;
4) satisfaction of creditors' claims in the procedure for restructuring the debtor's debts in accordance with the approved plan and in the procedure for repaying the debtor's debts in accordance with this Code.
4. Satisfaction of creditors' claims at the expense of the debtor's property, which is the subject of security, is allowed only within the framework of insolvency proceedings, except for cases when the enforcement proceedings are at the stage of distribution of sums of money recovered from the debtor, including those received from the sale of the debtor's property, or when the property is at the stage of sale from the moment of publication of information about the sale.
5. The moratorium shall cease to apply from the date of closure of the insolvency proceedings.
The moratorium on the satisfaction of secured creditors' claims at the expense of the debtor's property, which is the subject of security, is automatically terminated and the secured creditor receives the right to enforce the subject of security, including outside the bankruptcy case, after the expiration of 120 days from the date of opening of insolvency proceedings, if the commercial court has not adopted a resolution declaring the debtor bankrupt or issued a resolution approving a debt restructuring plan or a resolution extending the moratorium on the satisfaction of secured creditors' claims during this period.
The commercial court, upon the request of the administrator of the property, creditors or the debtor, may extend the moratorium on the satisfaction of secured creditors' claims before the end of the moratorium period provided for in this part, if: a restructuring plan is being developed and has prospects of being approved by the court and the property that is the subject of the security may be used in the implementation of the restructuring plan; the value of the property that is the subject of the security significantly exceeds the amount of the secured creditor's claims; there are other grounds indicating that the sale of the property that is the subject of the security separately from the debtor's other property will result in a significant decrease in the value of the property that is not the subject of the security. The commercial court shall issue a ruling on the extension of the moratorium on the satisfaction of secured creditors' claims.
{Part five of Article 121 as amended by Law No. 3985-IX of September 19, 2024 }
Article 122. Identification of creditors and preliminary court hearing↑
1. Submission by creditors of monetary claims against the debtor and their consideration by the restructuring manager shall be carried out in accordance with the procedure established by this Code for legal entities.
2. A preliminary court hearing shall be held no later than 60 days from the date of commencement of insolvency proceedings.
3. The restructuring manager shall, no later than 10 days before the date of the previous court session, be obliged to send the court, creditors and the debtor a report on the results of the verification of the debtor's declaration.
4. The ruling based on the results of the previous court session shall, in particular, state:
1) the obligation of the restructuring manager to hold a meeting of creditors, which must be held no later than 14 days from the date of such a resolution;
2) the date of the meeting of the commercial court, which must be held no later than 60 days from the date of such a resolution, at which the debt restructuring plan approved by the creditors will be considered or a decision will be made to proceed to the debt repayment procedure or to close the proceedings in the case.
{Clause 2 of Part Four of Article 122 as amended by Law No. 2971-IX of March 20, 2023 }
Article 123. Creditors' Meetings↑
1. Within three working days after the issuance of a resolution based on the results of the previous meeting of the commercial court, the arbitration manager shall, in accordance with this resolution, notify the creditors in writing of the place and time of the creditors' meeting and organize its holding.
Participation of creditors in creditors' meetings, determination of the number of votes of creditors with the right of a decisive vote and participants in creditors' meetings with the right of an advisory vote shall be carried out in accordance with the procedure established by this Code for legal entities.
2. The main tasks of the creditors' meeting in the procedure for restructuring the debtor's debts are:
1) consideration of the restructuring manager's report on the results of the verification of the debtor's property declaration;
2) consideration of the draft plan for restructuring the debtor's debts;
3) making a decision to approve the debtor's debt restructuring plan or to file a petition with the commercial court to proceed to the debtor's debt repayment procedure or to close the insolvency proceedings.
3. Creditor meetings and voting at them shall be held in accordance with the procedure established by this Code for legal entities.
4. Creditors' meetings shall be convened as necessary, but not less than once every three months, unless another decision is made by the creditors' meeting.
Together with the notice of the creditors' meeting, the arbitration manager shall send the creditors the agenda of this meeting.
Creditors have the right to submit proposals to the arbitration manager for inclusion of issues on the agenda before the day of sending the notice of the creditors' meeting. Issues proposed by creditors are mandatory for inclusion by the arbitration manager on the agenda of the creditors' meeting.
5. The decision to approve the debt restructuring plan shall be made by bankruptcy and secured creditors separately.
{Paragraph one of part five of Article 123 as amended by Law No. 2971-IX of March 20, 2023 }
The debt restructuring plan and amendments thereto are considered approved if they are supported by all secured creditors and at least 50 percent of bankruptcy creditors.
The votes of interested persons shall not be taken into account in determining the required majority of votes.
6. A creditor has the right to vote in absentia in writing on each issue of the agenda of the creditors' meeting. Unless another procedure for absentee voting is approved by the creditors' meeting, a creditor who votes in absentia is obliged to send the results of his vote in writing to the address of the arbitration manager no less than five days before the date of the creditors' meeting.
The result of the vote of such a creditor shall be announced by the arbitration manager to other creditors at the creditors' meeting and shall be taken into account when determining the results of the vote on each item on the agenda.
7. The court shall decide to close the proceedings in the case at the request of the creditors' meeting, a party to the case, or on its own initiative, if:
1) the debtor has indicated incomplete and/or inaccurate information about the property, income and expenses of the debtor and his family members in the declaration of property status, if the debtor has not submitted to the court a corrected declaration of property status with complete and accurate information about the property, income and expenses of the debtor and his family members within seven days after receiving the report of the restructuring manager on the results of the verification of such declaration;
2) the property of the debtor's family members was purchased with the debtor's funds and/or registered in the name of another family member with the aim of the debtor evading repayment of the debt to creditors;
3) by a court decision that has entered into legal force and has not been canceled, the debtor was held administratively or criminally liable for unlawful actions related to insolvency.
{Clause 4 of Part Seven of Article 123 was excluded pursuant to Law No. 1382-IX of April 13, 2021 }
The commercial court may not, within one year from the date of closing the insolvency proceedings on the grounds specified in this part, open proceedings in a new insolvency case against the same debtor.
8. The competence of the creditors' meeting includes making decisions on:
1) approval of the debtor's debt restructuring plan;
2) refusal to approve the debt restructuring plan and filing a petition with the commercial court to declare the debtor bankrupt and initiate a procedure for repaying the debtor's debts or to close the insolvency proceedings;
3) applying, in cases provided for by this Code, to the commercial court with a request for the appointment of a restructuring manager or a sales manager;
4) application to the commercial court with a request to close the debt restructuring procedure due to non-fulfillment or impossibility of implementing the debt restructuring plan and the introduction of a procedure for repaying the debtor's debts;
5) an application to the commercial court with a request to remove the arbitration manager from the exercise of his powers;
{Clause 5 of Part Eight of Article 123 and as amended by the Law No. 3249-IX dated 13.07.2023 }
6) other issues stipulated by law.
Section III. RESTRUCTURING OF DEBTORS' DEBT↑
Article 124. Debt restructuring plan↑
1. A debtor's debt restructuring plan is developed with the aim of restoring the debtor's solvency.
2. The debtor's debt restructuring plan shall specify:
1) the circumstances that caused the debtor's insolvency;
2) information about creditors' claims recognized by the court, indicating their amount and priority of satisfaction;
3) information on the debtor's property status based on the results of measures taken to identify and compile a description of the debtor's property (inventory);
4) information about all the debtor's income, including income that the debtor expects to receive during the debt restructuring procedure;
5) the amount that will be allocated monthly to repay creditors' claims;
6) creditors' claims against the debtor that will be forgiven (written off) in the event of the implementation of the debt restructuring plan;
7) the amount of money that will remain with the debtor each month to meet household needs, in the amount of at least one subsistence minimum per debtor and for each person dependent on him;
8) the amount that will be allocated each month to repay the debtor's mandatory periodic obligations (payment of alimony, etc.).
{Part two of Article 124 is supplemented by paragraph 8 in accordance with Law No. 2971-IX of 20.03.2023 }
3. The debtor's debt restructuring plan may contain provisions on:
1) the sale in the debt restructuring procedure of part of the debtor's property, including that which is the subject of security, the priority, terms of sale of such property and the funds planned to be received from its sale;
2) changing the method and procedure for fulfilling obligations, including the amount and terms of debt repayment;
3) deferral or installment payment or forgiveness (write-off) of debts or part thereof;
4) performance of the debtor's obligations by third parties, in particular by concluding a suretyship agreement, guarantee and other transactions in accordance with civil law;
5) other measures aimed at improving the debtor's financial situation and satisfying the creditors' claims (retraining, employment, etc.).
4. The creditors' claims shall be satisfied in accordance with the debtor's debt restructuring plan at the expense of funds received from the implementation of the debtor's debt restructuring plan by the debtor or the arbitration manager, if the debtor's debt restructuring plan provides for his further participation in the implementation of such plan, in the order specified in Article 133 of this Code.
{Paragraph one of part four of Article 124 as amended by Law No. 2971-IX of March 20, 2023 }
In the event of the debtor's property being used as collateral in the debt restructuring procedure, the debt restructuring plan must provide for extraordinary satisfaction of the creditor's claims for the obligations secured by such property.
The funds remaining after the sale of the debtor's property, which is the subject of security, shall be used to satisfy the claims of creditors in accordance with the debt restructuring plan approved by the commercial court in the order specified by this Code.
5. A person who has expressed a desire to participate in the debtor's debt restructuring plan as a guarantor has the right to participate in the discussion of the terms of debt restructuring of such debtor.
6. The term for the implementation of a debtor's debt restructuring plan in an insolvency case may not exceed five years.
In the case of repayment of debts on loans received by the debtor for the purchase of housing, the term of implementation of the debtor's debt restructuring plan cannot exceed 10 years.
Upon a motivated request by the debtor and provided that more than 80 percent of creditors' claims have been repaid, the commercial court may extend the deadline for the debtor's debt restructuring plan beyond the deadline.
Article 125. Debts not subject to restructuring↑
1. Debts of the debtor for the payment of alimony, compensation for damage caused by a criminal offense, injury, other damage to health or death of an individual, for the payment of a single contribution for mandatory state social insurance and for the payment of other mandatory payments for mandatory state social insurance are not subject to restructuring.
{Part one of Article 125 and as amended by the Law No. 3249-IX dated 13.07.2023 }
2. A tax debt that arose within three years prior to the date of the decision to initiate proceedings on the debtor's insolvency shall be recognized as hopeless and written off in the procedure for restructuring the debtor's debts.
3. The debtor's debt restructuring plan shall be approved by the commercial court only after the debtor's debts for the payment of alimony, compensation for damage caused by injury, other damage to health or death of an individual, for the payment of a single contribution for mandatory state social insurance and for the payment of other mandatory payments for mandatory state social insurance, if such debt exists.
Article 126. Approval of the debtor's debt restructuring plan↑
1. The restructuring manager shall, within three days from the date of approval by the creditors' meeting of the debt restructuring plan agreed with the debtor, submit an application to the commercial court for approval of the debt restructuring plan.
2. The following shall be attached to the application for approval of the debtor's debt restructuring plan:
1) a plan for restructuring the debtor's debts;
2) minutes of the creditors' meeting;
3) written objections of creditors who did not participate in the vote or voted against the approval of the debtor's debt restructuring plan (if any).
3. The Commercial Court shall consider the application for approval of the debtor's debt restructuring plan within 10 days from the date of its receipt.
The commercial court shall notify the debtor, creditors, the restructuring manager, as well as third parties, of the date of consideration of the application for approval of the debt restructuring plan, if the restructuring plan provides for the fulfillment of the debtor's obligations by such persons.
4. The Commercial Court shall hear each creditor present at the meeting who has objections to the debt restructuring plan.
5. The presence of creditors who did not participate in the vote or voted against the approval of the debtor's debt restructuring plan, as well as third parties, if the restructuring plan provides for the fulfillment of the debtor's obligations by such persons, is mandatory.
In the absence of the creditors specified in this part, the commercial court shall schedule a new court session to approve the debtor's debt restructuring plan.
Repeated failure to appear at the court hearing by creditors who did not participate in the vote or voted against the approval of the debtor's debt restructuring plan, as well as third parties, if the restructuring plan provides for the fulfillment of the debtor's obligations by such persons, does not prevent the consideration of the case.
6. Failure to appear at a court hearing by the debtor, creditors who have approved the debt restructuring plan, or the restructuring manager who have been duly notified of such a hearing shall not prevent the consideration of the case.
7. The commercial court is obliged to approve the debtor's debt restructuring plan if such plan is approved by the creditors and the debtor.
The commercial court has the right, upon a motivated request of the debtor or creditor, to change the debt repayment plan in terms of increasing or decreasing the term of its implementation or the amount of the amount that will be allocated monthly to repay creditors' claims, or the amount that the debtor will have monthly to meet household needs (not less than the amount established by Article 124 of this Code).
8. The Commercial Court shall issue a ruling refusing to approve a plan for restructuring the debtor's debts in an insolvency case if:
1) the procedure for developing, approving and coordinating a debt restructuring plan established by this Code has been violated;
{Clause 1 of Part Eight of Article 126 as amended by Law No. 2971-IX of March 20, 2023 }
2) the terms of debt restructuring are contrary to the law;
3) when approving the debt restructuring plan, violations of the law were committed, which affected the voting result;
4) a creditor who did not participate in the vote or voted against the approval of the debt restructuring plan proves that if the debtor were declared bankrupt in accordance with the procedure specified in this Code, his claims would be satisfied in an amount exceeding the amount of claims that will be satisfied in accordance with the terms of the debt restructuring plan;
5) the debtor has not repaid debts for the payment of alimony, compensation for damage caused by injury, other damage to health or death of an individual, for the payment of a single contribution to mandatory state social insurance and payment of other mandatory payments for mandatory state social insurance, if such debts existed at the time of submission of the debtor's debt restructuring plan for approval to the commercial court;
{Clause 5 of Part Eight of Article 126 as amended by Law No. 2971-IX of March 20, 2023 }
6) the debtor takes actions aimed at obstructing the conduct of procedures provided for by this Code in relation to him;
7) the debt restructuring plan has not been approved by the debtor.
9. The issuance of a resolution refusing to approve the debtor's debt restructuring plan does not constitute an obstacle to a repeated application to the court for approval of the debtor's debt restructuring plan if the circumstances that prevented its approval by the court are eliminated.
10. In the event that the commercial court issues a ruling refusing to approve the debt restructuring plan, the debtor and the creditors' meeting have the right to apply to the court with a motion to declare the debtor bankrupt or to close the insolvency proceedings.
11. If, within three months from the date of the decision to open insolvency proceedings and initiate the procedure for restructuring the debtor's debts, a plan for restructuring the debtor's debts agreed upon by the debtor and approved by the creditors is not submitted to the commercial court, the commercial court has the right to make a decision to declare the debtor bankrupt and to open the procedure for repaying the debtor's debts in accordance with this Code or to close the insolvency proceedings.
Article 127. Consequences of approval of a debtor's debt restructuring plan↑
1. The debtor's debt restructuring plan shall enter into force on the date of its approval by the commercial court and shall be binding on the debtor and creditors.
2. From the date of approval by the court of the debtor's debt restructuring plan, the claims included in such a plan may be satisfied only in the manner and in the manner specified in the debtor's debt restructuring plan.
3. In addition to the agreements provided for in the debt restructuring plan, the debtor during the restructuring does not have the right to:
1) to carry out transactions regarding the alienation or encumbrance of the debtor's real and movable property, including property and non-property objects, securities, etc., the value of which exceeds 10 times the minimum wage;
2) enter into loan agreements, life support agreements, assignment of claims, debt transfer, and transfer of the debtor's property into trust management;
3) act as a guarantor for the obligations of other persons.
4. During the term of the debt restructuring plan, the debtor is obliged to notify the creditors included in the debt restructuring plan of any significant changes in his property status, as well as of any loans and credits received, including the purchase of goods on credit, and to notify other parties before concluding such agreements of the introduction of the debt restructuring procedure in respect of him.
{Paragraph one of part four of Article 127 as amended by Law No. 2971-IX of March 20, 2023 }
After the termination of the powers of the restructuring manager in the case of the debtor's insolvency, the obligation to maintain a register of creditors' claims and provide creditors included in the debtor's debt restructuring plan with information on the status of implementation of the specified plan shall be imposed on the debtor.
{Part four of Article 127 is supplemented by paragraph two in accordance with Law No. 2971-IX of March 20, 2023 }
The debtor is obliged to provide information on the status of the debtor's debt restructuring plan at the request of the commercial court and to submit such information to the state bankruptcy authority on a quarterly basis.
{Part four of Article 127 is supplemented by paragraph three in accordance with Law No. 2971-IX of March 20, 2023 }
5. From the date of approval of the debt restructuring plan by the court, the powers of the restructuring manager shall be terminated, except in cases where:
1) the debt restructuring plan provides for the further participation of the restructuring manager in the implementation of such plan, his powers and sources of payment of his basic remuneration;
2) the debt restructuring plan provides for the sale of the debtor's property. In such a case, the restructuring manager continues to exercise his powers until the sale of the debtor's property is completed, the funds received from the sale of the property are distributed, the report on such distribution is approved by the creditors' meeting and such report is submitted to the court.
6. The debt restructuring plan does not affect the creditor's claims against third parties if the creditor with such claims voted against the approval of the debtor's debt restructuring plan. The court's approval of the debt restructuring plan for the initial obligation does not terminate the additional obligations related to it in accordance with Article 604 of the Civil Code of Ukraine if the pledgee voted against such a plan.
Article 128. Implementation of the debtor's debt restructuring plan↑
1. From the date of approval of the debt restructuring plan, the debtor shall begin to repay the creditors' claims in accordance with the terms of such plan.
2. Approval by the commercial court of a debt restructuring plan may be grounds for renegotiating the debtor's civil law contracts with new terms of their execution.
3. In the event of a debtor's violation of the debt restructuring plan, creditors whose claims are included in such a plan have the right to apply to the commercial court with a motion to close the proceedings in the case or to initiate a procedure for repaying the debtor's debts.
If the court grants one of such motions, the creditors' claims that were to be forgiven (written off) under the terms of the debt restructuring plan are restored in full.
Article 129. Completion of the debtor's debt restructuring plan↑
1. No later than five days after the expiration of the term for the debtor's debt restructuring plan, as well as if there are grounds for early termination of the debt restructuring procedure, the debtor shall be obliged to provide the court and the creditors included in the debt restructuring plan with a report on the implementation of the debt restructuring plan.
The report on the implementation of the debtor's debt restructuring plan shall be accompanied by evidence of satisfaction of creditors' claims in accordance with such
plan.
2. The commercial court shall, within five days after receiving the report on the implementation of the debtor's debt restructuring plan, but no later than 10 days after the expiration of the term for the implementation of such plan, schedule a court session to consider the report on the implementation of the debt restructuring plan. At this court session, creditors may express their complaints about the debtor's actions regarding the implementation of the debt restructuring plan.
3. Based on the results of consideration of the report on the implementation of the debtor's debt restructuring plan, as well as the creditors' complaints, the commercial court shall issue one of the following decisions:
1) on the closure of insolvency proceedings in connection with the debtor's implementation of the debt restructuring plan;
2) on the debtor's failure to comply with the debt restructuring plan, the debtor's declaration of bankruptcy and the introduction of a procedure for repaying the debtor's debts.
4. In the event of the closure of insolvency proceedings in connection with the implementation of the debt restructuring plan, the consequences provided for by this Code regarding the debtor's discharge from debts shall apply.
5. In the event of non-fulfillment or incomplete fulfillment of the terms of the debtor's debt restructuring plan, creditors may present their claims to the debtor in the unfulfilled amount provided for by the agreements.
Section IV. DECLARING THE DEBTOR BANKRUPTCY AND INTRODUCING THE PROCEDURE FOR REPAYMENT OF THE DEBTOR'S DEBT↑
Article 130. Declaration of a debtor as bankrupt and introduction of a procedure for repayment of the debtor's debts↑
1. The Commercial Court shall adopt a resolution declaring the debtor bankrupt and initiating the procedure for repaying the debtor's debts if, within 120 days from the date of opening the insolvency proceedings, the creditors' meeting has not adopted a decision to approve the debtor's debt restructuring plan or has adopted a decision to proceed to the procedure for repaying the debtor's debts.
By a resolution declaring the debtor bankrupt and initiating a procedure for repaying the debtor's debts, the commercial court also appoints a manager for the sale of property in accordance with the procedure specified by this Code.
The notification of the declaration of the debtor as bankrupt and the introduction of the procedure for repaying the debtor's debts is officially published on the official web portal of the judiciary of Ukraine within three days from the date of adoption of the relevant court decision.
2. No later than 30 days from the date of introduction of the procedure for repaying the debtor's debts, the property sales manager, together with the debtor, shall conduct an inventory of the debtor's property and determine its value.
Article 131. Debtor's property in the procedure for repaying the debtor's debts↑
1. The debtor's property subject to sale in the procedure for repaying the debtor's debts shall constitute the liquidation estate.
2. The liquidation estate shall include all property of the debtor in his possession, as well as that which will be received by the debtor into his possession after his declaration of bankruptcy and before the completion of the procedure for repaying the debtor's debts, except for the property specified in parts six and seven of this article and Article 132 of this Code.
3. The liquidation estate may include property that is the debtor's share in joint property. In such a case, the debtor's share from the joint property shall be separated according to the rules provided for by civil law.
4. From the moment the debtor is declared bankrupt:
The disposal of all rights regarding the property included in the liquidation estate is carried out by the liquidation manager on behalf of the debtor;
The seizure imposed on the property of a debtor declared bankrupt and other restrictions on the disposal of such debtor's property shall be canceled. The imposition of new seizures or other restrictions on the disposal of the bankrupt's property shall not be permitted.
{Part Four of Article 131 as amended by Law No. 3985-IX of September 19, 2024 }
5. From the moment the debtor is declared bankrupt and until the court decision is issued to close the bankruptcy procedure, the registration of the transfer of ownership from/to the debtor and encumbrances on the debtor's property, including real estate and securities that exist in undocumented form, takes place exclusively on the basis of the application of the sales manager.
A resolution declaring a debtor bankrupt is the basis for the cancellation of all arrests and other restrictions on the disposal of such debtor's property (except for those applied in criminal proceedings) and the performance of relevant registration actions.
{Part five of Article 131 is supplemented by paragraph two in accordance with Law No. 3985-IX of September 19, 2024 }
6. The liquidation estate does not include housing that is the only place of residence of the debtor's family (an apartment with a total area of no more than 60 square meters or a living area of no more than 13.65 square meters for each member of the debtor's family or a residential building with a total area of no more than 120 square meters) and is not the subject of security, as well as other property of the debtor that cannot be subject to enforcement under the law.
7. The liquidation estate does not include funds held in the debtor's accounts in pension funds and social insurance funds.
8. The sale of the bankrupt's property shall be carried out in accordance with the conditions and in the manner specified by this Code for legal entities.
Article 132. Exclusion of individual property objects of the debtor from the liquidation estate↑
1. The commercial court has the right, upon a reasoned request of the debtor and other participants in the insolvency proceedings, to exclude from the liquidation estate the debtor's property, which may be subject to enforcement under the law, but which is necessary to meet the urgent needs of the debtor or his family members.
2. The commercial court has the right to exclude from the liquidation estate property objects with a value of no more than 10 minimum wages, which are illiquid or the proceeds from the sale of which will not significantly affect the satisfaction of creditors' claims.
3. The total value of the debtor's property excluded from the liquidation estate in accordance with the provisions of this Article may not exceed 30 times the minimum wage.
4. The list of property excluded from the liquidation estate in accordance with the provisions of this Article shall be approved by the commercial court, which shall issue a ruling that may be appealed in the appellate or cassation procedure.
Article 133. Procedure for satisfying creditors' claims↑
1. To satisfy creditors' claims, funds from the sale of the debtor's property shall be deposited into a separate bank account opened by the sales manager.
2. Expenses related to insolvency proceedings (expenses for payment of court fees, payment of remuneration and reimbursement of expenses of the arbitration manager related to the exercise of his powers, payment of services of specialists for the assessment of property objects subject to sale) shall be reimbursed in full until the creditors' claims are satisfied.
{Part two of Article 133 as amended by Law No. 2971-IX of 20.03.2023 }
3. Creditors' claims for the debtor's obligations secured by the pledge of the property of an individual shall be satisfied at the expense of such property.
The funds received from the sale of the bankrupt's property, which is the subject of security, after covering the costs associated with the maintenance, preservation and sale of this property and paying the additional remuneration of the arbitration manager in accordance with the provisions of Article 30 of this Code, shall be used exclusively to satisfy the creditor's claims under the obligations secured by such property.
4. Creditors' claims included in the register of creditors' claims shall be satisfied in the following order:
1) first of all, the requirements for the debtor to pay arrears of wages to employees who are/were in employment relations with the debtor, payment of alimony, compensation for damage caused by injury, other damage to health or death of an individual, payment of insurance contributions for mandatory state pension and other social insurance are satisfied;
{Clause 1 of Part Four of Article 133 as amended by Law No. 2971-IX of March 20, 2023 }
2) secondly, the requirements for payment of taxes and fees (mandatory payments) are satisfied and settlements with other creditors are made;
3) in the third place, penalties (fines, penalties) entered in the register of creditors' claims are paid.
The claims of each subsequent tier shall be satisfied at the expense of funds from the sale of the debtor's property after the claims of the previous tier have been fully satisfied, except in cases established by this Code.
In the event of insufficient funds received from the sale of the bankrupt's property to fully satisfy all claims of one priority, the claims shall be satisfied in proportion to the amount of claims belonging to each creditor of one priority.
5. Creditors' claims under the debtor's obligations secured by the property pledge that are not satisfied through the sale of the collateral shall be satisfied in the second instance.
6. Claims not satisfied due to insufficient property of the debtor shall be deemed discharged, except in cases provided for by this Code.
7. Claims against the debtor for the payment of alimony, compensation for damage caused by injury, other damage to health or death of an individual, for the payment of insurance contributions for mandatory state pension and other social insurance, as well as other claims of a personal nature that were not satisfied or partially paid in the procedure for satisfying creditors' claims may be filed after the end of proceedings in a case of insolvency of an individual in accordance with the procedure established by civil legislation.
Chapter V. CONSEQUENCES OF CLOSING BANKRUPTCY PROCEEDINGS↑
Article 134. Relief from debts in insolvency proceedings↑
1. When issuing a ruling on the completion of the procedure for repaying the debtor's debts and closing the insolvency proceedings, the commercial court shall adopt a decision on the discharge of the debtor - an individual - from debts.
2. An individual is not exempted from further fulfillment of creditors' claims after the completion of court proceedings in the insolvency case and the obligation to repay outstanding debts, namely:
1) compensation for damage caused by a criminal offense, injury, other damage to health or death of an individual;
{Paragraph 1 of Part Two of Article 134 and as amended by the Law No. 3249-IX dated 13.07.2023 }
2) payment of alimony;
3) fulfillment of other requirements that are inextricably linked to the identity of an individual.
Such claims that have not been fully repaid in the insolvency case may be filed after the termination of the insolvency proceedings in the unpaid portion.
Article 135. Restrictions on persons declared bankrupt↑
1. Within five years after the declaration of bankruptcy of an individual, insolvency proceedings may not be initiated upon his/her application, except if the debtor has repaid all debts in full in accordance with the procedure provided for by this Code.
2. Within five years after a natural person is declared bankrupt, such person shall be obliged, before concluding loan agreements, credit agreements, surety agreements or pledge agreements, to notify the other parties to such agreements in writing of the fact of his insolvency.
An individual cannot be considered to have impeccable business reputation for three years after being declared bankrupt.
Chapter VI. PROCEEDINGS IN CASES OF INSOLVENCY OF CERTAIN CATEGORIES OF NATURAL PERSONS↑
Article 136. Peculiarities of considering insolvency cases of debtors engaged in agriculture↑
1. In the event of the opening of insolvency proceedings against a debtor engaged in agriculture, a debt restructuring plan shall be developed taking into account the specifics of conducting such activities - the seasonality of agricultural production and its dependence on natural and climatic conditions, as well as the possibility of satisfying creditors' claims at the expense of income that may be received by the debtor from such activities.
2. In the event of a debtor engaged in agriculture being declared bankrupt and the procedure for repaying the debtor's debts being introduced, the decision regarding land plots owned by such debtor or in permanent or temporary use shall be made taking into account the requirements of the Land Code of Ukraine .
Article 137. Peculiarities of considering cases of insolvency of individual entrepreneurs↑
1. In the event of the opening of proceedings in a case of insolvency of an individual entrepreneur, a corresponding entry shall be made in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations.
2. The court's decision to complete the debt repayment procedure and close the proceedings in the insolvency case of an individual entrepreneur is the basis for state registration of the termination of the entrepreneurial activity of an individual entrepreneur.
{Paragraph one of part two of Article 137 as amended by Law No. 3249-IX of 13.07.2023 }
The decision to close the proceedings in the case of insolvency of an individual entrepreneur is sent to the state registrar for making the appropriate entry.
FINAL AND TRANSITIONAL PROVISIONS
1. This Code shall enter into force on the day following the day of its publication and shall be put into effect six months after the date of entry into force of this Code.
The provisions determining the creation of an electronic trading system and the authorization of electronic platforms shall enter into force three months after the date of entry into force of this Code.
1 - 1. Bankruptcy cases against the State Joint-Stock Company "Chornomornaftogaz" shall not be initiated until December 31, 2028, and the initiated proceedings in bankruptcy cases against the State Joint-Stock Company "Chornomornaftogaz" shall be terminated, except in cases where liquidation occurs by decision of the owner.
{Section "Final and Transitional Provisions" supplemented by paragraph 1 - 1 in accordance with Law No. 399-IX of 19.12.2019 ; with amendments made in accordance with Laws No. 2850-IX of 13.12.2022 , No. 4777-IX of 10.02.2026 - regarding the entry into force of the changes, see paragraph 1 of Section II }
1 - 2. To establish that temporarily, for the period of the quarantine established by the Cabinet of Ministers of Ukraine to prevent the spread of the COVID-19 coronavirus disease:
The creditors' meeting (committee) may be held via video conference, subject to compliance with the requirements of Article 48 of this Code. If a participant in the creditors' meeting (committee) does not have a qualified electronic signature, the identity of such participant shall be confirmed in accordance with the procedure established by the Law of Ukraine "On the Unified State Demographic Register and Documents Confirming Citizenship of Ukraine, Certifying a Person or His Special Status. The video recording of the video conference shall be a mandatory appendix to the minutes of the creditors' meeting (committee). The minutes of the creditors' meeting (committee) shall be signed by the arbitration manager, and in the event of a creditors' meeting (committee) without the participation of the arbitration manager - by the creditor elected as the chairman of the creditors' meeting (committee);
{Paragraph two of clauses 1 - 2 of the section "Final and transitional provisions" as amended by Law No. 1944-IX of 14.12.2021 ; as amended by Law No. 2801-IX of 01.12.2022 }
The creditors' meeting (committee) may be conducted by means of a survey. The initiator of the survey sends all participants of the creditors' meeting (committee) a request with a draft decision on the proposed issue(s). Such a request shall specify the address to which the survey participants must send their response and the deadline for providing the response. Requests shall be sent to the e-mail addresses of the participants of the creditors' meeting (committee) specified in the applications with monetary claims against the debtor, or to the officially notified address. If the survey participant does not have an e-mail address, the request shall be sent by post. In this case, the deadline for conducting the survey shall take into account the deadlines for receipt of postal correspondence. In case of agreement with the proposed decision, the survey participant shall sign the draft decision and send it to the initiator within 15 days from the date of receipt of the request. The survey participant's consent to the decision must be unconditional. The decision of the survey participant, together with the documents confirming his/her authority, with the imposition of a qualified electronic signature of an authorized person, shall be sent to the initiator of the survey by e-mail or by means of an electronic trust service of registered electronic delivery. The decision of the survey participant, sent by postal service, shall be signed personally by the survey participant or his/her representative with the provision of documents confirming the authority of the representative. Responses received after the expiration of the established period or such, the content of which does not allow establishing the expression of the will of the survey participant on the raised issue, shall not be taken into account when calculating the voting results on such issue. The initiator of the survey shall be obliged to state the decision made in writing, attach copies of the responses of all survey participants to it and send it to all participants of the creditors' meeting (committee) in the manner established for sending requests, within 10 days from the date of expiration of the period for accepting responses from the participants of the creditors' meeting (committee). The date of decision-making is considered to be the last day of the period during which survey participants were to send their responses to the survey initiator;
{Paragraph three of clauses 1 - 2 of the section "Final and transitional provisions" as amended by Law No. 1944-IX of 12/14/2021 ; as amended by Law No. 2801-IX of 12/01/2022 }
The arbitration manager shall not be subject to disciplinary liability for failure to perform actions provided for by this Code, if their performance is made impossible by the requirements of the quarantine established by the Cabinet of Ministers of Ukraine in order to prevent the spread of the COVID-19 coronavirus disease, provided that the arbitration manager notifies the creditors' committee (in a case of bankruptcy of a legal entity - debtor), creditors (in a case of insolvency of an individual - debtor), as well as creditors whose claims are secured by the pledge of the debtor's property;
{Paragraph four of clauses 1 - 2 of the section "Final and transitional provisions" as amended by Law No. 1944-IX of 12/14/2021 }
The court, at the request of the creditors' committee, creditor, arbitration manager or on its own initiative, may extend the terms of holding a preliminary court session in a bankruptcy (insolvency) case, an application within the framework of proceedings in a bankruptcy (insolvency) case for the invalidation of transactions made by the debtor, the effect of a moratorium on satisfying creditors' claims, the announcement of the first, repeated and/or second repeated auction, the implementation of a plan for the rehabilitation or restructuring of the debtor's debts, the procedure for the disposal of property, liquidation, restructuring of the debtor's debts and repayment of the debtor's debts.
{Paragraph five of clauses 1 - 2 of the section "Final and transitional provisions" as amended by Law No. 1944-IX of 12/14/2021 }
To establish that temporarily, for the period of the quarantine established by the Cabinet of Ministers of Ukraine to prevent the spread of the COVID-19 coronavirus disease, and within 90 days from the date of the cancellation of the quarantine:
{Paragraph seven of clauses 1 - 2 of the section "Final and transitional provisions" was excluded pursuant to Law No. 1944-IX of 14.12.2021 }
{Paragraph eight of clauses 1 - 2 of the section "Final and transitional provisions" was excluded on the basis of Law No. 1944-IX of 14.12.2021 }
{Paragraph nine of clauses 1 - 2 of the section "Final and transitional provisions" was excluded on the basis of Law No. 1944-IX of 14.12.2021 }
interest shall be suspended on the debtor's obligations to creditors that are restructured by the debtor's rehabilitation or debt restructuring plan. Penalties shall not be accrued for the debtor's failure to fulfill such obligations. Overdue obligations stipulated by the debtor's rehabilitation or debt restructuring plan shall be subject to installments for the period of implementation of the debtor's rehabilitation or debt restructuring plan.
{Section "Final and Transitional Provisions" supplemented by paragraphs 1 - 2 in accordance with Law No. 728-IX of 06/18/2020 }
1 - 3. It is not allowed to open proceedings in cases of bankruptcy of business companies in the defense-industrial complex, defined by part one of Article 1 of the Law of Ukraine "On the Peculiarities of Reforming State-Owned Enterprises of the Defense-Industrial Complex", except for those that are liquidated by the decision of the debtor, within three years from the date of entry into force of this Law.
{Section "Final and Transitional Provisions" supplemented by paragraphs 1 - 3 in accordance with Law No. 1630-IX of 13.07.2021 }
1 - 4. For the period and for the purpose of implementing measures to reorganize state unitary commercial enterprises that are participants in the State Concern "Ukroboronprom", provided for by the Law of Ukraine "On the Peculiarities of Reforming Enterprises of the Defense Industrial Complex of State Ownership", the provisions of this Code regarding the prohibition of reorganizing enterprises in respect of which bankruptcy proceedings have been opened shall not apply to the said enterprises.
{Section "Final and Transitional Provisions" supplemented by paragraphs 1 - 4 in accordance with Law No. 1630-IX of 13.07.2021 }
1 - 5. For the period of validity of the Law of Ukraine "On Stimulating the Development of the Digital Economy in Ukraine", in the event that the funds received from the sale of the property of a resident of Diya City - a bankrupt - are insufficient to satisfy the claims of all creditors of one tier, the claims of creditors who have preferential rights with respect to such claims, as provided for by the Law of Ukraine "On Stimulating the Development of the Digital Economy in Ukraine", shall first be satisfied in proportion to the amount of such claims.
{Section "Final and Transitional Provisions" supplemented by paragraphs 1 - 5 in accordance with Law No. 1667-IX of 07/15/2021 }
1 - 6. To establish that temporarily, during the martial law introduced by the Decree of the President of Ukraine dated February 24, 2022 No. 64/2022 "On the Introduction of Martial Law in Ukraine", approved by the Law of Ukraine dated February 24, 2022 No. 2102-IX , as well as within six months after its termination or cancellation:
The creditors' meeting (committee) may be held via video conference, subject to compliance with the requirements of Article 48 of this Code. If a participant in the creditors' meeting (committee) does not have a qualified electronic signature, the identity of such participant shall be confirmed in accordance with the procedure established by the Law of Ukraine "On the Unified State Demographic Register and Documents Confirming Citizenship of Ukraine, Identifying a Person or His Special Status". The video recording medium of the video conference is a mandatory appendix to the minutes of the creditors' meeting (committee). The minutes of the creditors' meeting (committee) held via video conference shall be signed by the creditors elected at the relevant meeting by the chairman or, on behalf of the creditors' meeting (committee), by the arbitration manager or other creditors;
The creditors' meeting (committee) may be conducted by means of a survey. The initiator of the survey sends all participants of the creditors' meeting (committee) a request with a draft decision on the proposed question(s). Such a request shall specify the address to which the participants of the survey must send their response and the deadline for providing the response. The request shall be sent to the e-mail addresses of the participants of the creditors' meeting (committee) specified in the applications with monetary claims against the debtor, or to the officially notified address. If the participant of the survey does not have an e-mail address, the request shall be sent by post. In this case, the deadline for conducting the survey shall take into account the deadlines for receipt of postal correspondence. In case of agreement with the proposed decision, the participant of the survey shall sign the draft decision and send it to the initiator within 15 days from the date of receipt of the request. The consent of the participant of the survey to the adopted decision shall be unconditional. The decision of the survey participant, sent together with documents confirming his/her authority, to the e-mail of the survey initiator, shall be signed using the qualified electronic signature of the authorized person. The decision of the survey participant, sent by postal means, shall be signed personally by the survey participant or his/her representative with the provision of documents confirming the authority of the representative. Answers received after the expiration of the established period or such, the content of which does not allow establishing the expression of the will of the survey participant on the raised issue, shall not be taken into account when calculating the voting results on such issue. The survey initiator shall be obliged to state the decision made in writing, attach copies of the answers of all survey participants to it and send it to all participants of the creditors' meeting (committee) in the manner established for sending requests, within 10 days from the date of expiration of the period for accepting answers from the participants of the creditors' meeting (committee). The date of decision-making is considered to be the last day of the period during which survey participants were to send their responses to the survey initiator;
The arbitration manager shall not bear disciplinary liability for failure to perform actions and failure to perform duties provided for by this Code, if their performance and/or performance was made impossible due to hostilities in the areas of the location or place of residence or stay of the debtor, creditor, location of the debtor's property, location of the office or place of residence or stay of the arbitration manager, which resulted in threats to life and health;
The commercial court, at the request of the creditors' committee, creditor, arbitration manager or on its own initiative, may extend the terms of holding a preliminary court session in a bankruptcy (insolvency) case, an application within the framework of proceedings in a bankruptcy (insolvency) case for the invalidation of transactions made by the debtor, the effect of a moratorium on satisfying creditors' claims, the announcement of the first, repeated and/or second repeated auction, the implementation of a rehabilitation plan (including if the proceedings in a bankruptcy case continue in accordance with the Law of Ukraine "On the Restoration of the Debtor's Solvency or Recognition of Him as Bankrupt") or the restructuring of the debtor's debts, the procedure for the disposal of property, liquidation, restructuring of the debtor's debts and repayment of the debtor's debts;
interest on the debtor's obligations to creditors that are restructured in accordance with the rehabilitation plan or the debtor's debt restructuring plan shall be suspended. Penalties for the debtor's failure to fulfill such obligations shall not be accrued. Overdue obligations stipulated in the rehabilitation plan or the debtor's debt restructuring plan shall be subject to installments for the period of implementation of the rehabilitation plan or the debtor's debt restructuring plan;
A bankruptcy (insolvency) case may be opened against a debtor without the advance payment of the remuneration provided for by this Code to the arbitration manager to the court's deposit account. In such a case, a copy of the agreement concluded by the applicant with the arbitration manager chosen by him on the exercise by the arbitration manager of his powers in the bankruptcy (insolvency) case until its closure with the payment, on the terms specified in this agreement, of remuneration in an amount not exceeding the amount established by this Code shall be attached to the application for the opening of a bankruptcy (insolvency) case. The commercial court, when opening proceedings in a bankruptcy (insolvency) case in accordance with this paragraph, shall appoint the arbitration manager with whom the applicant has concluded an agreement as the administrator of the property or the restructuring manager;
damage and/or losses caused to the debtor as a result of armed aggression against Ukraine are subject to mandatory assessment in accordance with the procedure established by the Cabinet of Ministers of Ukraine;
the commercial court refuses to open bankruptcy proceedings at the creditor's request if the debtor proves to the commercial court, before the preparatory meeting, that he is included in the electronic register of participants in the selection and performers of state contracts (agreements) and has a valid contract with state customers in the field of defense, or the claims of the creditor (creditors) are not satisfied as a result of armed aggression against Ukraine, including due to the location of the debtor's single property complex in the territories where hostilities are (were) being conducted, or in the territories temporarily occupied by the Russian Federation in accordance with the list approved by the central executive body that ensures the formation and implementation of state policy on issues of temporarily occupied territories;
The liability provided for in Part Six of Article 34 of this Code shall not apply to the debtor's management bodies if the debtor has not applied to the commercial court with an application to initiate proceedings in the case in cases provided for in this Code as a result of armed aggression against Ukraine, including due to the presence of the debtor's single property complex in the territories where hostilities are (were) being conducted, or in the territories temporarily occupied by the Russian Federation in accordance with the list approved by the central executive body that ensures the formation and implementation of state policy on issues of temporarily occupied territories.
{The section "Final and transitional provisions" is supplemented with paragraphs 1 - 6 in accordance with the Law No. 3249-IX dated 13.07.2023 }
1 - 7. To establish that until January 1, 2028, bankruptcy proceedings shall not be initiated, and the initiated proceedings shall be terminated with respect to the debtor - the State Enterprise "Eastern Mining and Processing Plant".
{Section "Final and Transitional Provisions" is supplemented by paragraphs 1 - 7 in accordance with Law No. 3577-IX of 07.02.2024 ; as amended by Laws No. 4217-IX of 14.01.2025 , No. 4777-IX of 10.02.2026 - regarding the entry into force of the changes, see paragraph 1 of Section II }
1 - 8. To establish that until January 1, 2026, bankruptcy proceedings shall not be initiated, and the initiated proceedings shall be terminated in respect of debtors - distribution system operators engaged in the distribution of electricity in the territories of licensed activity, which include territories in which hostilities were conducted as of December 31, 2023, or territories temporarily occupied by the Russian Federation as of December 31, 2023, in accordance with the list approved by the central executive body that ensures the formation and implementation of state policy on the territory of Ukraine temporarily occupied by the Russian Federation.
{Section "Final and Transitional Provisions" supplemented by paragraphs 1 - 8 in accordance with Law No. 3577-IX of 07.02.2024 }
1 - 9. Temporarily, during the martial law and within two years after its termination or cancellation:
1) it is not allowed to open bankruptcy proceedings against business companies that collectively meet the following criteria:
is an operator of critical infrastructure;
shares (stocks, units) of a business partnership were forcibly alienated during martial law;
the state directly or indirectly owns more than 50 percent of the shares (stocks, units) in the authorized capital of a business company, except for business companies that are liquidated by decision of the owner;
2) open bankruptcy proceedings against business companies that collectively meet the following criteria:
is an operator of critical infrastructure;
shares (stocks, units) of a business partnership were forcibly alienated during martial law;
The state directly or indirectly owns more than 50 percent of the shares (stocks, units) in the authorized capital of a business company, except for business companies that are liquidated by decision of the owner, is subject to closure at all stages of bankruptcy proceedings (before and after the debtor is declared bankrupt).
{Section "Final and Transitional Provisions" supplemented by paragraphs 1 - 9 in accordance with Law No. 3723-IX of 05/22/2024 }
2. From the date of entry into force of this Code, the following shall be deemed to have lost their validity:
Law of Ukraine "On the Restoration of the Solvency of a Debtor or Recognition of Him as Bankrupt" (Vidomosti Verkhovnoi Rada of Ukraine, 1992, No. 31, p. 440 with subsequent amendments);
Resolution of the Verkhovna Rada of Ukraine "On the Entry into Force of the Law of Ukraine "On Bankruptcy" (Vidomosti Verkhovna Rada of Ukraine, 1992, No. 31, p. 441).
{Paragraph four of clause 2 of section "Final and transitional provisions" is excluded on the basis of Law No. 1381-IX of 04/13/2021 ; /- amendments adopted by the Law of Ukraine No. 1382-IX of 04/13/2021 are impossible to make-/ }
2 - 1. Until the day of the start of operation of the Unified Judicial Information and Telecommunications System, the appointment of an arbitration manager to exercise the powers of a property administrator or restructuring manager in the event of the opening of bankruptcy (insolvency) proceedings shall be carried out taking into account the features specified in this paragraph.
The application of the initiating creditor or debtor - an individual - to initiate proceedings in a bankruptcy (insolvency) case, in addition to the information provided for in Part One of Article 34 and Part Two of Article 116 of this Code, must contain a proposal for the candidacy of an arbitration manager to exercise the powers of a property administrator or restructuring manager.
The initiating creditor or debtor - an individual - shall attach to the application for the initiation of proceedings in a bankruptcy (insolvency) case a statement by the arbitration manager specified in paragraph two of this paragraph on participation in the case, which must meet the requirements established by part three of Article 28 of this Code.
The commercial court, when opening proceedings in a bankruptcy (insolvency) case, appoints the arbitration manager specified in the second paragraph of this paragraph as the administrator of the property or the restructuring manager.
If the application of the initiating creditor or debtor - an individual to initiate proceedings in a bankruptcy (insolvency) case does not contain a proposal for the candidacy of an arbitration manager to exercise the powers of a property manager or a restructuring manager, or if the application for initiating proceedings in a bankruptcy (insolvency) case is not accompanied by an application by this arbitration manager to participate in the case, or if, for the reasons specified in Part Three of Article 28 of this Code, this arbitration manager cannot be appointed as a property manager or restructuring manager, or the application for initiating proceedings in a bankruptcy case is filed by a debtor - a legal entity, the appointment of an arbitration manager to exercise the powers of a property manager or restructuring manager shall be carried out by the commercial court independently from among the persons entered in the Unified Register of Arbitration Managers of Ukraine, in accordance with the procedure that was in effect before the date of entry into force of this Code, by using an automated system.
{Section "Final and Transitional Provisions" supplemented by paragraph 2 - 1 in accordance with Law No. 686-IX of 05.06.2020 }
3. To amend the following legislative acts of Ukraine:
{Subparagraph 1 of paragraph 3 of the section "Final and transitional provisions" has become invalid pursuant to Law No. 4196-IX of 09.01.2025 }
2) in the Civil Code of Ukraine (Vidomosti Verkhovnoi Rada of Ukraine, 2003, No. 40-44, p. 356):
to supplement Article 48 - 1 with the following content:
" Article 48 - 1. Legal consequences of the inability of an individual to fulfill his property obligations and repay debts
1. In the case of an individual who is unable to fulfill his property obligations and repay debts, insolvency proceedings may be opened and a procedure for restructuring the debtor's debts may be introduced, or such a person may be declared bankrupt in an insolvency case with the application of the procedure for satisfying creditors' claims under the rules provided for by the Code of Ukraine on Bankruptcy Procedures";
Part three of Article 191 shall be deleted;
Part two of Article 349 shall be deleted;
Article 590 after part three shall be supplemented with a new part of the following content:↑
"4. In the event of approval by the court in accordance with the bankruptcy legislation of a rehabilitation or restructuring plan for the debtor's debts under the main obligation, if it is different from the pledgor, the pledgee who voted against the approval of the rehabilitation plan for a legal entity or the restructuring plan for the debtor's debts - an individual, acquires the right to foreclose on the pledged property regardless of the maturity of the obligation secured by the pledge."
In this regard, parts four and five shall be considered parts five and six, respectively;
Part four of Article 604 shall be supplemented with the words "except in cases where the original obligation is amended by a rehabilitation or restructuring plan in accordance with the Code of Ukraine on Bankruptcy Procedures and the pledgee voted against such plan";
3) Article 337 of the Commercial Procedural Code of Ukraine (Vidomosti Verkhovna Rada of Ukraine, 2017, No. 48, p. 436) shall be supplemented with part five of the following content:
"5. Temporary restriction of the debtor's right to travel outside Ukraine may be applied by the court until the closure of proceedings in the insolvency case of such an individual in accordance with the procedure specified by the Code of Ukraine on Bankruptcy Procedures";
4) Article 20 of the Law of Ukraine "On Collateral" (Vidomosti Verkhovnoi Rada of Ukraine, 1992, No. 47, Art. 642 with subsequent amendments) after part two shall be supplemented with a new part of the following content:
"In the event of approval by the court in accordance with the bankruptcy legislation of a rehabilitation or restructuring plan for the debtor's debts under the main obligation, if it is different from the pledgor, the pledgee who voted against the approval of the rehabilitation plan for a legal entity or the restructuring plan for the debtor's debts - an individual, acquires the right to foreclose on the pledged property regardless of the maturity of the obligation secured by the pledge."
In this regard, parts three to seven shall be considered parts four to eight, respectively;
{Subparagraph 5 of paragraph 3 of section "Final and transitional provisions" has become invalid pursuant to Law No. 1909-IX of 11/18/2021 }
6) in the Law of Ukraine "On Mortgage" (Vidomosti Verkhovnoi Rada of Ukraine, 2003, No. 38, Art. 313; 2006, No. 13, Art. 110; 2009, No. 19, Art. 257; 2016, No. 32, Art. 555):
Part six of Article 5 shall be deleted;
in part three of Article 18, the words "value of the object" shall be replaced by the words "amount for which the object must be insured";
Article 33 after part two shall be supplemented with a new part with the following content:↑
"In the event of approval by the court in accordance with the bankruptcy legislation of a rehabilitation or restructuring plan for the debtor's debts under the main obligation, if it is different from the mortgagor, the mortgagee who voted against the approval of the rehabilitation plan for a legal entity or the restructuring plan for the debtor's debts - an individual, acquires the right to foreclose on the subject of the mortgage regardless of the maturity of the obligation secured by the mortgage."
In this regard, parts three to five shall be considered parts four to six, respectively;
paragraph seven of part one of Article 39 shall be deleted;
in the text of the Law, the words "initiation of proceedings in a case of restoration of solvency" and "bankruptcy proceedings have been initiated" shall be replaced, respectively, with the words "initiation of proceedings in a case of bankruptcy (insolvency)" and "initiation of proceedings in a case of bankruptcy (insolvency)";
7) Article 16 of the Law of Ukraine "On Land Lease" (Vidomosti Verkhovna Rada of Ukraine, 2004, No. 10, Art. 102; 2008, No. 48, Art. 358; 2017, No. 25, Art. 289) shall be supplemented with part five of the following content:
"A change in the owner of all the debtor's property in the form of a complete property complex in accordance with a court-approved rehabilitation plan is not a basis for amending the land lease agreement and/or its re-registration";
8) Part eight of Article 4-1 of the Law of Ukraine "On the Permit System in the Sphere of Economic Activity" (Vidomosti Verkhovnoi Rada of Ukraine, 2005, No. 48, p. 483 with subsequent amendments) after the third paragraph shall be supplemented with a new paragraph of the following content:
"A change in the owner of all the debtor's property in the form of a complete property complex in accordance with a rehabilitation plan approved by the court is not a basis for reissuing permits. In such a case, the company has the right to continue to carry out certain actions related to the implementation of economic activity or types of economic activity on the basis of a permit document previously issued to such a company."
In this regard, paragraphs four to twelfth shall be considered paragraphs five to thirteen, respectively;
9) in the Law of Ukraine "On Court Fee" (Vidomosti Verkhovnoi Rada of Ukraine, 2012, No. 14, Art. 87 with the following amendments):
paragraph 2 of part two of Article 3 shall be deleted;
in paragraph 2 of part two of Article 4:
in subparagraph 8, the words "rehabilitation before opening" shall be replaced by the words "rehabilitation, restructuring before opening";
in subparagraph 9, the words "on the initiation of proceedings" shall be replaced with the words "of the creditor on the initiation of proceedings in the case";
in the text of the Law , the words "initiation of bankruptcy proceedings" shall be replaced with the words "opening of bankruptcy (insolvency) proceedings";
10) Part seven of Article 15 of the Law of Ukraine "On Licensing Types of Economic Activities" (Vidomosti Verkhovnoi Rada of Ukraine, 2015, No. 23, Art. 158; 2016, No. 2, Art. 17; 2017, No. 25, Art. 289) shall be supplemented after the second paragraph with a new paragraph of the following content:
"A change in the owner of all the debtor's property in the form of a complete property complex in accordance with a rehabilitation plan approved by the court is not a basis for reissuing a license. In such a case, the company has the right to continue to carry out certain actions related to the implementation of economic activity or types of economic activity on the basis of the relevant valid license previously issued to such company."
In this regard, paragraphs three to seven shall be considered paragraphs four to eight, respectively;
11) in part one and paragraph one of part three of Article 5 of the Law of Ukraine "On State Registration of Real Rights to Real Estate and Their Encumbrances" (Vidomosti Verkhovnoi Rada of Ukraine, 2016, No. 1, Art. 9), the words "enterprises as single property complexes" and "enterprise as a single property complex" shall be deleted;
12) in Article 9 of the Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs and Public Organizations" (Vidomosti Verkhovnoi Rada of Ukraine, 2016, No. 2, p. 17, No. 47, p. 800; 2018, No. 37, p. 276):
Clause 28 of Part Two shall be supplemented with the word "liquidator";
Part four shall be supplemented with paragraph 24 with the following content:
"24) data on the stay of an individual entrepreneur in the process of insolvency proceedings";
in part six, the words "(property manager, rehabilitation manager, liquidator)" in all cases and numbers shall be deleted;
13) in the Law of Ukraine "On Enforcement Proceedings" (Vidomosti Verkhovna Rada of Ukraine, 2016, No. 30, Art. 542, No. 51, Art. 839; 2017, No. 48, Art. 436):
in part one of Article 34:
in paragraph 4 , the words "on decisions on the payment of wages, alimony, compensation for damage caused by injury, other damage to health or death of a person, author's remuneration, return of unused and timely non-returned funds of mandatory state social insurance in connection with temporary loss of working capacity, decisions of a non-property nature" shall be deleted;
Clause 8 shall be supplemented with the words "if the debt collector is included in the rehabilitation plan";
Clause 8 of Part One and Part Five of Article 39 shall be deleted;
in the first paragraph of part one of Article 40, the words "official publication of the notice of declaring the debtor bankrupt and opening the liquidation procedure" shall be deleted;
in the text of the Law, the words "initiation by the commercial court of bankruptcy proceedings" and "initiation of bankruptcy proceedings" shall be replaced, respectively, with the words "initiation by the commercial court of bankruptcy proceedings (insolvency)" and "initiation of bankruptcy proceedings (insolvency)";
14) The Law of Ukraine "On Financial Restructuring" (Vidomosti Verkhovnoi Rada of Ukraine, 2016, No. 32, p. 555) shall be supplemented with Article 25 - 1 of the following content:
" Article 25 - 1. Special provisions related to pre-trial rehabilitation procedures
1. If, during voluntary financial restructuring, the debtor has prepared a restructuring plan that was not approved by the involved creditors in accordance with the procedure established by this Law, but was approved by the required number of votes of creditors in accordance with Article 5 of the Code of Ukraine on Bankruptcy Procedures for the approval of a rehabilitation plan, the debtor has the right to attach such a restructuring plan as a rehabilitation plan to the application for approval of the rehabilitation plan without holding a creditors' meeting, provided that such a plan meets the requirements of Article 5 of the Code of Ukraine on Bankruptcy Procedures.
2. The restructuring plan may include a provision on the waiver of arbitration confirmation of the plan in accordance with the procedure provided for in Part Four of Article 25 of this Law and the establishment of mandatory confirmation of the plan in accordance with the procedure provided for in Article 5 of the Code of Ukraine on Bankruptcy Procedures. If the restructuring plan is approved by a vote of the involved creditors who hold more than two-thirds of the claims of the involved creditors, the debtor must file an application for approval of the restructuring plan with the economic court at the location of the debtor within five days after the approval of the plan. The economic court shall apply the procedure provided for in Article 5 of the Code of Ukraine on Bankruptcy Procedures to approve or reject the restructuring plan without holding a creditors' meeting, provided that such plan meets the requirements of Article 5 of the Code of Ukraine on Bankruptcy Procedures. For the purposes of approving the restructuring plan, the economic court shall use the report of an independent expert on the review of the debtor's financial and economic activities provided for in Article 11 of this Law.
3. The provisions of Articles 8, 28, 29 and 30 of this Law shall also apply to pre-trial rehabilitation procedures initiated by the debtor in accordance with this Article."
4. To establish that from the date of entry into force of this Code, further consideration of bankruptcy cases shall be carried out in accordance with the provisions of this Code, regardless of the date of opening of proceedings in a bankruptcy case, except for bankruptcy cases that are at the rehabilitation stage as of the date of entry into force of this Code, the proceedings in which shall continue in accordance with the Law of Ukraine "On Restoration of the Solvency of a Debtor or Recognition of Him as Bankrupt". The transition to the next judicial procedure and further proceedings in such cases shall be carried out in accordance with this Code.
The debtor's property shall be sold in accordance with the requirements of this Code, except for the debtor's property, the sale announcement of which was published before the date of entry into force of this Code. In the event of failure to sell such property, its further sale shall be carried out in accordance with the requirements of this Code.
4 - 1. To establish that during the validity of the Law of Ukraine "On measures aimed at settling the debts of heat supply and heat generation organizations and enterprises of centralized water supply and drainage for consumed energy carriers", the commercial court refuses to open bankruptcy proceedings if the debtor is included in the register of enterprises participating in the debt settlement procedure in accordance with the above-mentioned Law.
{Section "Final and Transitional Provisions" supplemented by paragraph 4 - 1 in accordance with Law No. 686-IX of 05.06.2020 }
4 - 2. To establish that the rehabilitation procedures prior to the opening of bankruptcy proceedings, initiated before the date of entry into force of the Law of Ukraine "On Amendments to the Code of Ukraine on Bankruptcy Procedures and Certain Other Legislative Acts of Ukraine on 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", shall be carried out in accordance with the provisions of this Code in the version in force prior to the entry into force of the said Law.
The provisions of this Code as amended by the Law of Ukraine "On Amendments to the Code of Ukraine on Bankruptcy Procedures and Certain Other Legislative Acts of Ukraine on 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" shall be applied by commercial courts when considering bankruptcy cases, proceedings in which were opened before the entry into force of this Law.
Until the provisions of the Tax Code of Ukraine are brought into line with this Code as amended by the Law of Ukraine "On Amendments to the Code of Ukraine on Bankruptcy Procedures and Certain Other Legislative Acts of Ukraine on 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", for taxation purposes, a rehabilitation plan means a rehabilitation plan approved by a commercial court in a bankruptcy case, a plan for restructuring the debtor's debts in a case of insolvency of an individual, a rehabilitation plan prior to the opening of proceedings in a bankruptcy case, and a preventive restructuring plan.
{Section "Final and Transitional Provisions" supplemented by paragraph 4 - 2 in accordance with Law No. 3985-IX of 09/19/2024 }
5. To establish that within five years from the date of entry into force of this Code, the debt of an individual that arose before the date of entry into force of this Code under a loan in foreign currency, which is secured by a mortgage on an apartment or residential building that is the only place of residence of the debtor's family, shall be restructured under the insolvency procedure of an individual in accordance with a restructuring plan or with a settlement agreement, taking into account the features established by this paragraph.
If the sole creditor in the insolvency procedure of an individual is a secured creditor, and the debtor owns one real estate object (apartment, residential building) that is the sole place of residence of the debtor's family and is mortgaged by the secured creditor, such debtor has the right to file an application for the initiation of insolvency proceedings in accordance with Article 116 of this Code, but without identifying the person of the arbitration manager and without providing evidence of the advance payment of remuneration to the restructuring manager, provided for in paragraph 12 of part three of Article 116 of this Code, to which is attached a draft restructuring plan that meets the restructuring conditions specified in this paragraph.
{Paragraph 5 of the section "Final and Transitional Provisions" is supplemented with a new paragraph in accordance with Law No. 1382-IX of 04/13/2021 }
The commercial court sends a ruling on accepting the application for consideration to the secured creditor specified in the application for opening insolvency proceedings and sets a deadline for submitting objections, which may not exceed 15 days.
{Paragraph 5 of the section "Final and Transitional Provisions" is supplemented with a new paragraph in accordance with Law No. 1382-IX of 04/13/2021 }
The commercial court shall, at a preparatory meeting, consider the restructuring plan attached to the application for the opening of insolvency proceedings, without applying Article 126 of this Code and without the creditor's objection. Based on the results of the consideration at the preparatory meeting, the commercial court shall issue a ruling on the opening of insolvency proceedings with the simultaneous approval of the restructuring plan provided for in this paragraph, or on the refusal to open insolvency proceedings due to the non-compliance of the submitted application with the restructuring conditions specified in this paragraph.
{Paragraph 5 of the section "Final and Transitional Provisions" is supplemented with a new paragraph in accordance with Law No. 1382-IX of 04/13/2021 }
The above-mentioned decisions may be appealed in the appellate and cassation courts in accordance with the Commercial Procedural Code of Ukraine .
{Paragraph 5 of the section "Final and Transitional Provisions" is supplemented with a new paragraph in accordance with Law No. 1382-IX of 04/13/2021 }
The composition and amount of the secured creditor's monetary claims for obligations arising from a loan in foreign currency, which is secured by a mortgage of an apartment or residential building, which is the only place of residence of the debtor's family, are determined in the national currency at the rate established by the National Bank of Ukraine on the date of opening proceedings in a case of insolvency of an individual. The amount of the claims of such a secured creditor does not include penalties and interest.
The claims of a secured creditor recognized by the commercial court shall be repaid by the debtor in the amount of the market value of the apartment or residential building securing the claims of such creditor, which shall be determined by an appraiser designated by the creditor. The remaining debt of such creditor shall be subject to forgiveness (write-off) in the manner specified in this paragraph.
If the debtor, prior to the opening of insolvency proceedings, has partially fulfilled its obligations under the credit agreement, namely, has partially paid the loan and interest on the loan, the amount of the secured creditor's claims subject to repayment in accordance with this paragraph shall be reduced by the greater of the following amounts:
{Paragraph eight of clause 5 of section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
the percentage of the principal debt on the loan repaid by the debtor before the opening of insolvency proceedings;
{Paragraph nine of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
the percentage of the total cost of the loan for the consumer, calculated in accordance with the legislation on consumer lending on the date of conclusion of the agreement on the provision of a loan in foreign currency, repaid by the debtor before the date of opening insolvency proceedings.
{Paragraph ten of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
If the total area of the mortgaged apartment does not exceed 60 square meters or the living area of such an apartment does not exceed 13.65 square meters for each member of the debtor's family, or if the total area of the residential building encumbered by the mortgage does not exceed 120 square meters:
{Paragraph eleven of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
the amount of the secured creditor's claims subject to repayment in accordance with this clause shall be additionally reduced by 10 percent, except in cases where the value of the mortgage exceeds the amount of debt under the credit agreement;
{Paragraph twelfth of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
The interest rate on the debtor's obligation restructured in accordance with this paragraph shall be set at the rate of the Ukrainian index of rates for twelve-month deposits of individuals in hryvnia, increased by 1 percentage point;
{Paragraph thirteen of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
The repayment period for the secured creditor's claims is 15 years, unless the creditor and the debtor agree on a different period.
{Paragraph fourteen of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
If the total area of the mortgaged apartment exceeds 60 square meters or the living area of such an apartment exceeds 13.65 square meters for each member of the debtor's family, or if the total area of the mortgaged house exceeds 120 square meters:
{Paragraph of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
The interest rate on the debtor's obligation restructured in accordance with this clause shall be set at the rate of the Ukrainian index of rates for twelve-month deposits of individuals in hryvnia, increased by 3 percentage points;
{Paragraph of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
The repayment period for the secured creditor's claims is 10 years.
{Paragraph of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
A restructuring plan that meets the requirements of this paragraph shall be deemed to be supported by a secured creditor in respect of the claims of such secured creditor under obligations arising from a foreign currency loan secured by a mortgage on an apartment or residential building that is the sole place of residence of the debtor's family.
The debtor and the secured creditor may, by agreement, establish in the restructuring plan or amicable agreement other conditions and procedure for repayment of the secured creditor's claims, provided that they are not worse for the interests of the debtor than those established by this clause. In the event of insufficient income of the debtor to meet the restructuring conditions, provided that the debtor lives in an apartment burdened with a mortgage, the total area of which does not exceed 60 square meters or the living area of which does not exceed 13.65 square meters for each member of the debtor's family, or the debtor lives in a residential building burdened with a mortgage, the total area of which does not exceed 120 square meters, by decision of the commercial court the minimum amount for the monthly implementation of the restructuring plan may be established, which cannot be less than half of the minimum wage established by the Cabinet of Ministers of Ukraine on the day of adoption of such a decision. The burden of proving insufficiency of income shall be on the debtor. The market value of property owned or jointly owned by the debtor and not secured by a loan subject to restructuring that may be subject to foreclosure shall be deemed to be the debtor's income for the purposes of this paragraph.
{Paragraph nineteen of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 13.04.2021 }
Forgiveness (write-off) of the balance of the debt under a foreign currency loan agreement secured by a mortgage, which is defined as the difference between the amount of the secured creditor's claims recognized by the commercial court in the case of the debtor's insolvency and the amount of the secured creditor's claims subject to repayment in accordance with this paragraph, is carried out after the debtor has fully fulfilled its obligations under the restructured obligation on the basis of a decision of the commercial court specified in Article 129 of this Code.
{Paragraph twenty of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
If the debtor does not have the financial capacity to repay the secured creditor's claims under the conditions provided for in this paragraph, the commercial court, upon the debtor's request, shall refuse to approve the restructuring plan, establish the minimum amount for the monthly implementation of the restructuring plan, which may not be less than half of the minimum wage established by the Cabinet of Ministers of Ukraine on the day of adoption of such a decision, until the restructured obligation is fully repaid, or proceed to the next procedure and close the insolvency proceedings.
{Paragraph twenty-one of clause 5 of the section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
For the purposes of this paragraph, the debtor's family members are considered to be the debtor's parents, husband or wife, children, including adopted children, who live together with the debtor on the date of the opening of insolvency proceedings.
{Paragraph twenty-two of clause 5 of section "Final and transitional provisions" as amended by Law No. 1382-IX of 04/13/2021 }
6. The Cabinet of Ministers of Ukraine, within six months from the date of entry into force of this Code:
to develop and submit to the Verkhovna Rada of Ukraine a draft law on amendments to certain legislative acts of Ukraine in connection with the adoption of this Code;
ensure the adoption and alignment of its regulatory legal acts with this Code;
to ensure that ministries and other central executive bodies adopt and bring their regulatory legal acts into compliance with this Code.
7. To establish that the Ministry of Justice of Ukraine shall organize the holding of a constituent congress of arbitration managers of Ukraine no later than one month from the date of entry into force of this Code and determine the procedure for its holding.
The Ministry of Justice of Ukraine shall post information on its official website about the holding of the constituent congress of arbitration managers of Ukraine and shall notify each arbitration manager thereof no less than 10 days before the date of its holding.
The founding congress of arbitration managers of Ukraine shall be chaired by the oldest arbitration manager participating in the congress. The chairman of the meeting shall elect the secretary of the founding congress.
The Constituent Congress of Arbitration Managers of Ukraine establishes a self-regulatory organization of arbitration managers and approves its charter, elects the Council of Arbitration Managers of Ukraine and the audit commission, approves the regulations on these bodies, and appoints members of the qualification commission and disciplinary commission.
After the formation of self-governing bodies of arbitration managers, a change in their composition shall take place in accordance with the procedure provided for by this Code.
Registration of a self-regulatory organization of arbitration managers is carried out in accordance with the Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs and Public Organizations".
Document publications
Voice of Ukraine from 04/20/2019 — No. 77
Official Gazette of Ukraine dated 03.05.2019 — 2019, No. 34, p. 9, article 1197, act code 94253/2019
Bulletin of the Verkhovna Rada of Ukraine dated 10.05.2019 — 2019, No. 19, p. 5, article 74
Government Courier dated 05/29/2019 — No. 99
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