Legislative Update—International Edition - May/June 2015

JD
Jones Day

Contributor

Jones Day is a global law firm with more than 2,500 lawyers across five continents. The Firm is distinguished by a singular tradition of client service; the mutual commitment to, and the seamless collaboration of, a true partnership; formidable legal talent across multiple disciplines and jurisdictions; and shared professional values that focus on client needs.
On March 24, 2015, the Russian government enacted new bankruptcy procedures, including amendments to rules governing insolvency cases that involve tax debts.
Worldwide Insolvency/Bankruptcy/Re-Structuring

Revised Russian Bankruptcy Regulations

On March 24, 2015, the Russian government enacted new bankruptcy procedures, including amendments to rules governing insolvency cases that involve tax debts. Decree No. 265 implements reforms authorized by Order No. 1358-r of July 24, 2014. Among other things, the decree permits greater interaction between the Russian Federal Tax Service ("FTS") and other federal and municipal agencies in insolvency cases where the FTS acts as the government's representative with respect to claims for taxes, fees, and customs duties. Decree No. 265 also allows for a greater exchange of information (electronic and otherwise) between the FTS and other federal and municipal agencies.

http://government.ru/media/files/6wNvf6li18g.pdf.

New Polish Restructuring Law

On April 9, 2015, Poland's National Assembly (Zgromadzenie Narodowe) adopted a new Restructuring Law, with the goal of introducing an effective mechanism to restructure a debtor-company's business and prevent liquidation. The Restructuring Law, which is expected to become effective on June 1, 2015 (with certain exceptions) after it is approved by Polish president Bronisław Komorowski: (i) makes the existing Bankruptcy and Reorganization Law applicable to liquidation proceedings only; (ii) establishes new rules and procedures governing restructuring proceedings; and (iii) includes various regulations implementing the changes. The new Restructuring Law was patterned on the European and U.S. examples that have proved to be most effective (e.g., chapter 11 of the U.S. Bankruptcy Code, the English scheme of arrangement, and the French sauvegarde proceeding).

Under the new law, financially distressed companies that would previously have been liquidated will now have the opportunity to restructure in either an arrangement proceeding pursuant to a plan approved by creditors or a rehabilitation proceeding. The restructuring plan option is a streamlined proceeding whereby a debtor, cooperating with a plan supervisor, discloses its assets and liabilities, specifies how it will treat creditor claims, and solicits creditor approval of the plan. The court's role is limited to approving or rejecting any plan approved by creditors.

A debtor unable to obtain creditor approval of a plan may resort to a court-supervised rehabilitation proceeding. Among other things, such proceedings give the debtor, under the supervision of a court-appointed administrator, the ability to reject unfavorable contracts, reduce its workforce, and sell redundant assets.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More