Financial Restructuring

Olexander M. Droug, Olexander V. Olshansky

The dramatic economic situation in Ukraine has put many firms into financial trouble. During times of such hardship, bankruptcy and insolvency law faces a special test. The well-known goals of insolvency law are to help viable businesses survive and facilitate the removal from the market of those that are not viable. Unfortunately, the assessment provided in the 2016 Doing Business report is that the goal of saving a viable business is unlikely to be achieved in Ukraine. Although the On Restoring the Solvency of a Debtor or Recognising it Bankrupt Act of Ukraine (Ukrainian generally applicable Bankruptcy Act) was restated with effect from 2013, Ukraine is still ranked 141 out of 189 economies in the Resolving Insolvency indicator of the report. It seems further reform is necessary to rise to the challenges of this difficult time...