November 2019 – On 21 October 2019, the
Code on Bankruptcy Procedures adopted by Ukraine's parliament
on 18 October 2018 ("the Code") came
into effect. The Code replaces the Act of Ukraine on Renewal of
Debtor's Solvency or Declaring It Bankrupt dated 14 May 1992
that applied previously. The Code has sparked controversy in
Ukraine and until the last moment there were discussions whether
its entering into effect should be postponed until a later
date.
Launch of insolvency proceedings
The Code makes launching insolvency proceedings much easier
compared to the previous law. Under the Code, creditors may file to
start insolvency proceedings against a debtor as soon as the debtor
fails to pay a debt when due, regardless of the amount and period
of delay. The court in charge of bankruptcy proceedings
("bankruptcy court") must commence the
proceedings unless there are grounds to stay them: (a) the debtor
has satisfied the creditors' claims in full before the
preliminary
