LAW OF UKRAINE

of June 18, 2020 No. 728-IX

About modification of the Code of Ukraine on insolvency proceedings concerning non-admission of abuses in the field of bankruptcy for implementation of the actions directed to prevention of origin and spread of koronavirusny disease of COVID-19

The Verkhovna Rada of Ukraine decides:

I. The Section "Final and Transitional Provisions" of the Code of Ukraine on insolvency proceedings (19, the Art. 74) to add data of the Verkhovna Rada of Ukraine, 2019 No. with Item 1-2 of the following content:

"1-2. Determine what is temporary, for action of the quarantine established by the Cabinet of Ministers of Ukraine for the purpose of prevention of spread of koronavirusny disease of COVID-19:

the meeting and creditor committee can remotely be carried out in the video conference mode, on condition of ensuring proper identification and check of powers of representatives of creditors. The carrier of video of video conference is appendix to the protocol of meeting and creditor committee. The protocol of meeting or creditor committee is signed by the arbitration manager solely or the creditor elected the chairman of the meeting or creditor committee (in case of their carrying out in the absence of the arbitration manager;

the meeting and creditor committee can be carried out by poll, on condition of ensuring proper identification and check of powers of representatives of creditors. The arbitration manager or the creditor elected the chairman of the meeting or creditor committee (in case of their carrying out in the absence of the arbitration manager, sends to all participants of the meeting of creditors or members of the committee of creditors of the debtor the corresponding request to the draft decision on the offered question (questions). In such request are specified the address to which creditors shall direct the answer with the made decision (for, against or refrained), and the term during which they shall make it. Sending to creditors of requests is performed on the e-mail addresses specified by creditors in statements with requirements to the debtor, statements on the merits of the case or statements on procedural questions. If the creditor has no e-mail address the inquiry can be sent by the mailing. In that case the term of holding poll shall consider terms of receipt of post correspondence. The creditor sends the decision made by him to the arbitration manager during the term specified in request. The decision of the creditor shall be unconditional. The answers sent after the termination of fixed term or such which content does not allow to establish declaration of will of the creditor who is rather broken by the arbitration manager question are not considered in case of calculation of results of vote on such question. The arbitration manager or the creditor elected the chairman of the meeting or creditor committee - in case of their carrying out in the absence of the arbitration manager, shall state the made decision in the form of the protocol, add to it the copy of answers of all creditors who took part in vote and to send to all participants of the meeting of creditors or members of the committee of creditors according to the procedure, established for the direction of requests within 10 days from the date of the termination of term on adoption of answers by it from creditors. The last day of term during which participants shall send the answers to the initiator of the written decision is considered decision date. The answer of the creditor by e-mail is sent shall be is certified by the digital signature;

the arbitration manager is exempted from liability for non-execution of the actions provided by this Code if they cannot be made in the conditions of the quarantine established by the Cabinet of Ministers of Ukraine for the purpose of prevention of spread of koronavirusny disease of COVID-19, if is proved to arbitration managers that they cannot be made in the conditions of quarantine, and also on condition of the notification on it of creditors, the elected to structure of creditor committee, and creditors whose requirements are provided with pledge of property of the debtor;

terms of carrying out preliminary court session on the case of bankruptcy (insolvency), addresses within proceeedings about bankruptcy (insolvency) about recognition invalid the transactions made by the debtor, operations of the moratorium on satisfaction of requirements of creditors, the announcement of holding the first, repeated and/or second repeated auction, accomplishment of the plan of sanitation or debt restructuring of the debtor, the procedure of the order property, liquidations, debt restructurings of the debtor and repayment of debts of the debtor are prolonged.

Determine what is temporary, for action of the quarantine established by the Cabinet of Ministers of Ukraine for the purpose of prevention of spread of koronavirusny disease of COVID-19, and within 90 days from the date of cancellation of quarantine:

opening of productions on cases on bankruptcy of debtors legal entities on the statement of creditors on the requirements to the debtor which arose since March 12, 2020 is not allowed;

the term determined by Article part six 34 of this Code is prolonged if the debtor proves that the impossibility of observance of monthly term on the address with the statement for opening of case on bankruptcy was caused by spread of koronavirusny disease COVID-19 and/or measures of fight against spread of this disease;

the creditor committee and the secured creditor (concerning property which is providing subject) have the right to make the decision on suspension of holding auctions for sale of property of the debtor. In case of acceptance by creditor committee and/or the secured creditor (concerning property which is providing subject) such decision expenses on preserving and content of property of the bankrupt and all risks on loss of property or reduction of its cost creditors who made such decision bear;

charge of percent on obligations of the debtor to creditors which are re-structured by the plan of sanitation or debt restructuring of the debtor stops. Penalties for failure to carry out by the debtor of such obligations are not charged. The overdue obligations provided by the plan of sanitation or debt restructuring of the debtor are subject to payment by installments for the term of accomplishment of the plan of sanitation or debt restructuring of the debtor".

II. Final provisions

1. This Law becomes effective from the date of, its publication following behind day.

2. To the Cabinet of Ministers of Ukraine in a month from the date of entry into force of this Law:

bring the regulatory legal acts into accord with this Law;

provide reduction by the ministries and other central executive bodies of their regulatory legal acts in compliance with this Law.

3. To the Cabinet of Ministers of Ukraine to include information on accomplishment of this law in the report on the course and results of accomplishment of the Program of activities of the Cabinet of Ministers of Ukraine for 2020.

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