Best Restructuring & Insolvency Lawyers in Kyiv

About Restructuring & Insolvency Law in Kyiv, Ukraine

Restructuring and insolvency law in Kyiv, Ukraine refers to the legal processes and frameworks that manage the financial distress of businesses and individuals who are unable to pay their debts. This field of law covers how companies or individuals can reorganize their debts, negotiate with creditors, and, if necessary, go through bankruptcy proceedings. In Ukraine, restructuring provides an alternative to bankruptcy by enabling debtors to agree with creditors on new payment terms and recover their business. Insolvency procedures, on the other hand, are more formal and may lead to liquidation if a company cannot be saved. The legal environment is regulated primarily by the Code of Ukraine on Bankruptcy Procedures as well as other related legislation.

Why You May Need a Lawyer

Legal counsel is crucial in restructuring and insolvency matters because these processes are complex and highly regulated. People typically seek legal assistance in the following situations:

• You are a business owner facing financial difficulties and need to evaluate debt restructuring options.
• Your business is receiving threats from creditors regarding non-payment or possible court action.
• You are a creditor who wants to initiate insolvency proceedings against a debtor in Kyiv.
• Your personal assets or business assets are at risk due to insolvency.
• You need to understand your rights and obligations in the context of ongoing bankruptcy proceedings in Ukraine.
• You want to explore whether restructuring can help your business survive and avoid liquidation.
• You need help negotiating and drafting agreements with creditors.
• You require legal representation in Ukrainian courts or before administrators handling insolvency cases.

Lawyers can provide strategic advice, ensure compliance with all procedural requirements, and protect your interests during negotiations or litigation.

Local Laws Overview

Restructuring and insolvency in Kyiv are primarily governed by the Code of Ukraine on Bankruptcy Procedures, enacted in 2019. Key aspects include:

• Clear delineation between voluntary and involuntary (creditor-initiated) bankruptcy procedures.
• Requirements for pre-trial restructuring, which may enable businesses to avoid bankruptcy court altogether if agreement can be reached with creditors.
• Appointment of an insolvency trustee (arbitration manager) to administer insolvency cases and protect creditors' rights.
• Strict rules on asset moratoriums, meaning that once proceedings begin, creditors are limited in their ability to pursue claims independently.
• Classification of creditors into various categories with prioritized rights for payment from proceeds if assets are liquidated.
• Special attention to protecting the rights of employees and the state in bankruptcy distribution schemes.
• Possibility for debtors to submit plans for financial recovery which must be approved by the majority of creditors and the court.
• Transparency requirements, including the publication of insolvency proceedings and notices to creditors.

Given the specifics of Ukrainian law and court procedures, professional legal assistance is recommended for navigating these processes efficiently.

Frequently Asked Questions

What is the difference between restructuring and insolvency in Ukraine?

Restructuring is a process that aims to restore a debtor's financial health, typically by reorganizing debts and negotiating new payment terms with creditors. Insolvency, on the other hand, is a formal legal state where the debtor is unable to meet their liabilities, often leading to bankruptcy proceedings and potential liquidation.

Who can initiate insolvency proceedings in Kyiv?

Both debtors and creditors may initiate insolvency proceedings. Debtors can apply to court voluntarily if they recognize financial difficulties. Creditors may initiate proceedings if a debtor fails to pay debts within certain timelines.

What is an arbitration manager?

An arbitration manager is a licensed specialist appointed to oversee insolvency proceedings. They act as administrators, receivers, or liquidators, ensuring processes comply with the law and mediating between the debtor and creditors.

What types of restructuring are available?

Ukrainian law allows for pre-trial restructuring agreements, court-sanctioned restructuring plans, and simplified processes for small businesses. Each type aims to prevent liquidation and support financial recovery.

What happens to employees during insolvency proceedings?

Employees’ claims, such as wages and social contributions, receive priority in the payment order during insolvency proceedings. Layoffs may occur if business activity cannot continue, but legal protections exist to safeguard workers' rights.

Can an individual undergo bankruptcy in Ukraine?

Yes. Individuals, as well as entrepreneurs, can now apply for personal bankruptcy under certain conditions. This process helps resolve debts but has specific eligibility requirements.

How long do insolvency proceedings typically last?

The duration varies depending on the case complexity, number of creditors, and whether restructuring is possible. Some cases can resolve within months, but complex liquidations may take years.

Are foreign creditors treated differently?

Foreign creditors generally have the same rights as domestic creditors in Ukrainian insolvency proceedings, but procedural and language differences may require additional legal support.

What assets are protected from liquidation?

Certain assets may be protected by law, such as essential personal property or assets necessary for an individual’s basic standard of living. The specifics depend on the case and legal interpretation.

Is public notice of bankruptcy required?

Yes. Ukrainian law mandates public announcement of bankruptcy proceedings to inform all potential creditors and ensure transparency.

Additional Resources

If you are seeking advice or information about restructuring and insolvency in Kyiv, the following resources may be helpful:

• Ministry of Justice of Ukraine - Supervises licensing and procedures in insolvency cases.
• Commercial Courts of Ukraine - Handle bankruptcy matters for companies and entrepreneurs in Kyiv.
• National Association of Arbitration Managers of Ukraine - Association of professionals specializing in insolvency proceedings.
• State Register of Court Decisions - Public database where bankruptcy decisions are available for review.
• Ukrainian Bankruptcy Code and related legislative acts - For in-depth legislative background.

Next Steps

If you need legal assistance with restructuring and insolvency in Kyiv, consider the following actions:

• Collect all documents relevant to your financial situation, including debt agreements, court notices, and business records.
• Consult with a lawyer who specializes in restructuring and insolvency for a professional assessment of your case.
• Assess your options including out-of-court restructuring, formal insolvency proceedings, or negotiation with creditors.
• Be prepared to follow strict procedural rules and deadlines outlined in Ukrainian law.
• Stay informed about your rights and obligations at all stages of the process, and use available resources from governmental or professional organizations.

Taking timely legal advice gives you the best chance of a successful outcome, whether you hope to save your business or protect your interests as a creditor or an individual.