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Russia’s Economics and Trade Ministry proposes bankruptcy cases moratorium

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Christian Fernsby ▼ | March 25, 2020
Russia’s Ministry of Economic Development and Trade has drafted a legislative proposal envisaging freezing of the bankruptcy cases launch, according to the website of draft laws and regulations.
Street in Russia
Russia   Street in Russia
Amendments are to be introduced into the Law on Bankruptcy.

Topics: Russia bankruptcy

An explanatory note to the bill reads the document has been prepared to ensure the stable environment of economy in exceptional cases, including natural and man-made emergency situations, sharp changes in the ruble's exchange rate.

Thus, under the bill, the government will be authorized to impose moratorium on the opening of bankruptcy cases in exceptional circumstances for a term of up to 6 months against certain organizations meeting the requirements set by the Cabinet.

Bankruptcy claims filed during the freezing are to be returned by commercial courts, the draft law reads. If during the moratorium a court fails to introduce a bankruptcy procedure in the matters launched prior to the freezing, proceedings are to be suspended.


 

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