Saturday, 26 December 2009
Lawyers call for improving procedure on bankruptcy in Ukraine
Lawyers have proposed to improve the procedure on bankruptcy to provide information on new creditors and institution of criminal proceedings on debtors' bankruptcy, according to a press release of the Clifford Chance international law firm. According to the report, lawyers, judges and representatives of the Economy Ministry and the State Department for bankruptcy under the leadership of the Effective Management Foundation are elaborating the relevant draft law on bankruptcy to change the acting law of Ukraine "On renewal of paying capacity of debtors or recognition their bankruptcy.""Western and Ukrainian investors are anxious about unpredictability of the procedure of bankruptcy in Ukraine... Analyzing possible options of development of events in each certain case, our clients on the whole come to conclusion that the law on bankruptcy doesn't protect their rights in full," advisor to the Clifford Chance law firm Oleksiy Soshenko has said.He noted that one of the regulations of the acting law on bankruptcy could become a problem for creditors, under which demands of creditors are considered to be met and can't be reinstated if they miss a 30-day term to address the court with claims against debtors after an official announcement about their bankruptcy.According to Soshenko, all Ukrainian banks are facing the same problem as each bank has thousands of clients, and often it is impossible to keep track of all the information about institution of criminal proceedings on bankruptcy.