Bankruptcy and Rehabilitation Procedures

Course objective

To provide up-to-date knowledge of bankruptcy and debtor solvency restoration procedures under Russian law (Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”), taking into account established case law.

Goals

To broaden general knowledge of bankruptcy and examine the practical nuances of rehabilitation procedures (financial recovery and external administration) as well as bankruptcy liquidation proceedings.

Block 1. Introduction

• The significance, aims and objectives of bankruptcy and solvency restoration procedures
• Recent changes in bankruptcy legislation

Block 2. Main part

Rehabilitation procedures

• Financial recovery and external administration: overview, grounds for introduction, procedural specifics, the financial recovery plan and the external administration plan
• Measures to restore the debtor’s solvency: debt restructuring, settlement agreement, sale of the debtor’s business

Bankruptcy procedure

• Indicators of bankruptcy. Mandatory payments as grounds for the authorized body to file a bankruptcy petition
• Grounds and procedure for applying to the arbitrazh (commercial) court
• Hearing of bankruptcy cases in the arbitrazh court
• Consequences of introducing bankruptcy procedures
• Legal regime of the debtor’s contracts
• Register of creditors’ claims: compilation, publication of information, amendments, review of claims
• Analysis of the debtor’s financial position by the interim manager
• Workshop: solvency analysis, identifying signs of potential bankruptcy
• Time limits of bankruptcy procedures

Participants in a bankruptcy case

• Legal status of the debtor. Interested and affiliated persons under bankruptcy legislation
• Powers of the arbitrazh court
• Insolvency practitioner (interim, administrative, external, bankruptcy trustee): appointment, removal and release, rights, duties, remuneration. Interaction with tax authorities
• Analysis of the debtor’s financial and business activities
• Creditors
• Creditors’ meeting: procedure for convening, holding and making decisions
• Creditors’ committee: formation, procedures and decision-making
• The authorized body in bankruptcy cases: competence and practice

The debtor’s assets

• Bankruptcy estate. Inventory and valuation of assets. Sale of assets at auction
• Current payments and the ranking of creditors’ claims, settlement procedure
• Costs of bankruptcy procedures

Key areas of work in bankruptcy proceedings

• Identifying signs of deliberate and fictitious bankruptcy
• Challenging the debtor’s transactions and returning assets to the bankruptcy estate. Case law
• Subsidiary liability of persons controlling the debtor: founders, managers, officers. Case law
• Taxation in bankruptcy procedures
• Interaction of the insolvency practitioner with the bailiff service
• Managing accounts receivable: pre-trial and court stages. Procedural specifics of bankruptcy cases and separate disputes
• The bankruptcy trustee’s report and completion of bankruptcy proceedings
• Discharge from obligations and repayment of creditors’ claims by third parties

Block 3. Conclusions

• Summary
• Answers to participants’ questions and discussion