​​On 9 November 2023, the Parliamentary Committee for Economic Development recommended the adoption of the Bill implementing the EU Preventive Restructuring Directive 2019/1023 (“Bill #10143”) at the first reading. The next day, the Cabinet of Ministers of Ukraine presented its own (alternative) bill on the same subject (“Bill #10228”). 

The imminent transposition of Directive 2019/1023 (“PRD”) into Ukrainian law is driven by several factors:

(1)    Ukraine’s attainment of candidate status for EU membership in June 2023 mandates compliance with the PRD as part of the EU acquis; 
(2)    Fulfilling conditions for micro-financial assistance in 2023, crucial during wartime, necessitates legislation aligning with PRD principles to enhance corporate bankruptcy and insolvency regimes, allowing for full debt discharge; 
(3)    Transposition is integral to the Roadmap for Capacity-Building Activities designed to facilitate the implementation of the Code of Ukraine on Bankruptcy Procedures adopted by the Ministry of Justice in September 2023;  and
(4)    The European Commission’s November 2023 emphasis on the imperative of enhancing Ukraine’s bankruptcy legislation further underscores the urgency of the transposition of the PRD. 

It is important to keep in mind that the conditions for providing micro-financial assistance for 2023 required Ukraine to implement the PRD by the end of 2023, and it appears that the country failed to meet that deadline. Given the complexity of preventive restructuring and Ukraine’s unique situation of having to transpose the PRD during wartime, the failure to meet the deadline is not surprising. What remains clear is that the transposition of the PRD will occur sooner or later, and the bills tabled in Parliament provide a certain idea of how the Ukrainian restructuring procedure may ultimately look.

Read the full story here by Oleksiy Kononov, MSCA4Ukraine Post-Doctoral Fellow, Faculty of Law, Economics and Finance (FDEF), University of Luxembourg.

Richard Turton had a unique role in the formation and management of INSOL Europe,
INSOL International, the IPA (English Insolvency Practitioners Association) and R3 (Association of Business Recovery Professionals in the UK). In recognition of his achievements, these four organisations jointly created an award in memory of Richard. The 2024 competition is now open for anyone who is a national of a developing or emerging nation; works in or studies insolvency & restructuring law and practice and is under 35 years of age.

The successful applicant will be asked to write a paper of 3,000 words on a subject of insolvency or turnaround agreed with the panel. This paper will be published in summary in one or more of the four Member Associations' journals and in full on their websites. The winner will be invited to attend the INSOL Europe Annual Congress in Sorrento, 3-6 October, expenses paid. Applications deadline: 14 June 2024. 

For more information and to apply, visit the Richard Turton Award page here.

SAVE THE DATE! The 18th annual R3 & INSOL Europe Conference on cross-border restructuring and insolvency returns to London on 27 June 2024.

The one-day conference is aimed at all restructuring and insolvency professionals with an interest in cross-border matters. This conference is aimed at all professionals interested in cross-border restructuring and insolvency, including financial advisers, lenders, distressed asset investors, judges and academics.

INSOL Europe will be hosting a panel on sanctions, chaired by Damien Murren (Teneo, Ireland; Council member and Country Co-ordinator for Ireland). Further details here.