The Long-Awaited Financial Restructuring Law Has Come Into Force

The Law of Ukraine "On Financial Restructuring", adopted on 14 June 2016 (the "Financial Restructuring Law"), came into force on 19 October 2016. The market has long awaited introduction of legislation enabling the use of commonly known contractual restructuring instruments without commencing the debtor's rehabilitation proceedings in court.

Under the Financial Restructuring Law, the other provisions of Ukrainian legislation shall apply to the rights and liabilities of the creditors and debtors to the extent they are in line the Financial Restructuring Law.   

The creditors involved (the "Involved Creditors") in the financial restructuring procedure (the "Procedure") shall be determined by the debtor. The Procedure is commenced upon petition of the debtor and Involved Creditors' consent if at least one financial institution unrelated to the debtor is involved in it.