The law on granting a court instalment plan to debtors to whom moratorium applies

Pepeliaev Group advises that on 8 June 2020 the Russian President signed the new federal law No. 166-FZ on measures to ensure the stable development of the economy and to prevent the consequences of the spread of the coronavirus. Article 9 of the federal law contains provisions granting debtors to which the moratorium applies a court instalment plan in bankruptcy cases for the purpose of settlements with creditors.

The draft law on granting a court instalment plan to debtors to whom the moratorium applies

Pepeliaev Group advises that draft law No. 953580-7 is pending its first reading in the Russian State Duma (the lower house of the Federal Assembly of Russia). Article 9 of the draft law contains provisions concerning the granting to debtors to which the moratorium applies of a court instalment plan in bankruptcy cases for the purpose of settlements with creditors.

Refusal of the moratorium: practical consequences On 17 April 2020 the State Duma in the third reading adopted draft law No. 685368-7 which introduces significant amendments to the current article 9.1 of the Bankruptcy Law, regulating the application of the moratorium on bankruptcy and other significant restrictions with respect to a wide range of persons.

The Russian Supreme court’s new explanations regarding bankruptcy

On 30 April 2020, the Russian Supreme Court (the “Supreme Court”) approved additional Review No. 2 of selected issues of case law associated with the application of legislation and measures to prevent the spread of the new coronavirus infection (COVID-19) in the Russian Federation.

The right to waive the moratorium on bankruptcy

Pepeliaev Group advises that on 27 April 2020 Federal Law No. 149-FZ dated 24 April 2020 came into force, introducing significant changes to the Law on bankruptcy regarding the moratorium on bankruptcy.

COVID-19: transactions prohibited during the moratorium on bankruptcy

Pepeliaev Group advises on the rules for identifying entities with respect to which the moratorium on bankruptcy was enacted in the light of the coronavirus COVID-19 pandemic, and concerning certain types of transactions which such organisations have no right to enter into while the moratorium is in force.

Clarifications of the Russian Supreme Court concerning legislation on bankruptcy

New restrictions on filing documents with a court: what is to be done?

The moratorium on the initiation of bankruptcy cases: consequences and recommendations On 26 March 2020 a draft law was put before the State Duma; this draft law grants a right to the Russian Government to introduce a moratorium on the initiation of bankruptcy cases in extraordinary cases. Taking into account the current situation, we can expect that the draft law will be promptly adopted and applied.

A pledge status of a competent body’s claims in bankruptcy cases: risks and consequences Law firm Pepeliaev Group advises of the entry into force of amendments to the Russian Tax Code to introduce a pledge status of outstanding obligations to the state budget, starting from 1 April 2020 .
Amendments to the Russian Tax Code have been introduced by Federal Law No. 325-FZ dated 29 September 2019 “On amending Part I and Part II of the Tax Code of the Russian Federation”, including to article 73 of the Code. The provision has been supplemented with clause 2.1 concerning the creation of a pledge with respect to the obligations to the state budget by virtue of a law. Please find below the principal amendments and consequences of the new provisions being implemented as applied to the interests of a taxpayer company and its creditors if the company goes bankrupt. 

New legal positions of the Russian Supreme Court regarding creditors exercising their rights in bankruptcy cases Pepeliaev Group draws your attention to the new legal positions the Russian Supreme Court has formed concerning foreclosure in bankruptcy cases involving individuals and the exercise of creditors’ other rights. 

The Supreme Court has explained the finer points of secondary liability of controlling entities

Pepeliaev Group draws your attention to the explanations of the Russian Supreme Court regarding the application of Chapter III.2 of the Bankruptcy Law “Liability of a debtor’s executive manager and other persons in a bankruptcy case”.