The Ministry of Economic Development introduced another insolvency/bankruptcy bill, which is expected to bring a significant change in the company arrangements procedure for companies and for the first time in Russian legislative history to allow bankruptcy proceedings against groups of companies, including those with international structures.
The Ministry of Economic Development advised to change the name of the bill to be Law on Company Arrangements and Insolvency/Bankruptcy. Almost three quarters of the bill focus on company arrangements procedure. The company arrangements plan may be approved by the creditors before starting the court proceedings, which makes the proceedings much less complicated. Additionally, the bill enables the court to apply the company arrangements procedure even when majority of creditors is opposed to it, provided that the interim receiver of the company will at his/her own responsibility prove that the recovery plan is legal and realistic.
Dmitry Stepanov, a partner at Egorov Puginsky Afanasiev & Partners, Law Offices commented the final amendments to the bankruptcy bill for the audience of Russia Today TV channel.