Cross-border insolvency proceedings in Ukraine
On 19 January 2013 a new draft of the Ukrainian Law on Restoring Debtor’s Solvency or Declaring Debtor Bankrupt (hereinafter referred to as the “Law”) came into effect. The new draft introduced into Ukrainian legislation the cross-border insolvency concept which is well-known to the majority of jurisdictions.
Generally, cross-border insolvency is considered to take place when an insolvent debtor has assets in several jurisdictions or when any of such debtor’s creditors has its seat in a jurisdiction other than that where the insolvency proceedings are initiated.It is worth noting that, until recently, the concept of cross-border insolvency was nowhere to be found in Ukrainian law. Given this fact, the introduction of the new law evidences that Ukraine has made an important step forward in the implementation of the cross-border insolvency concept.
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Andrey Astapov, Oleh Beketov, Oleksiy Zorin