In corporate bankruptcy proceedings, the introduction of a new procedure is proposed, and the draft bill has already been submitted to the State Duma.
This concerns Federal Law Draft No. 1188799-8. The plan includes restoring the solvency of companies, including through debt restructuring. The court may initiate this procedure upon the application of the debtor, a bankruptcy creditor, or based on the decision of the first creditors' meeting during the observation period. Certain exceptions apply (Articles 1, 2, and 64 of the draft).
Within four months from the commencement of the procedure, the debtor is required to prepare a restructuring plan and submit it to the representative of the creditors' meeting (committee), as well as to the crisis manager appointed by the court. The latter will oversee the management of the procedure (Articles 1, 76, and 77 of the draft).
The crisis manager will organize a creditors' meeting to review the restructuring plan. Following discussions, he will submit to the court an appropriate document along with evidence of approval by the meeting and other necessary materials. All actions must be completed within stipulated deadlines. The court will approve the plan provided that certain conditions are met (Articles 81-83 of the draft).
The implementation period for the restructuring plan shall not exceed four years from its approval date. An extension is possible by decision of the creditors' meeting but not for more than an equivalent period (Article 96 of the draft).
