CHANGES IN BANKRUPTCY: NEW RULES FOR 2025
The Law of Ukraine No. 3985-IX dated September 19, 2024 introduced significant amendments to the Code of Ukraine on Bankruptcy Procedures, particularly regarding the definition and regulation of the term “interested party.”
Expansion of the list of interested parties
Previously, the Code of Ukraine on Bankruptcy Procedures defined interested parties as legal entities established with the participation of the debtor or those that carried out joint activities with the debtor during the last three years.
Law No. 3985-IX significantly expands this definition, adding the following to the list of interested parties:
– Individuals and legal entities with significant influence over the debtor: these may be shareholders, participants, or other persons who directly or indirectly own a substantial share in the debtor’s authorized capital or are able to influence its management decisions.
– Persons related by family ties to the debtor’s management: family members or close relatives of the debtor’s executives may be considered interested parties if they have financial or other interests connected to the debtor’s activities.
– Creditors with special relations to the debtor: for example, creditors who provided loans under preferential terms or had other privileged relationships with the debtor.
Consequences of expanding the definition of interested parties
The expansion of the list of interested parties has important implications for bankruptcy procedures:
– Increased control over debtor transactions: including a wider range of individuals as interested parties allows for a more thorough analysis of the debtor’s financial operations and helps detect possible abuses or fraudulent actions.
– Protection of creditors’ rights: the expanded definition ensures a fairer distribution of the debtor’s assets among creditors and helps prevent potential conflicts of interest.
– Greater transparency of bankruptcy procedures: clearly identifying the range of interested parties contributes to greater transparency and predictability of bankruptcy proceedings, increasing trust in the judicial system and the economic environment as a whole.
Conclusion
The amendments introduced by Law No. 3985-IX regarding the definition of interested parties are aimed at improving bankruptcy procedures in Ukraine, increasing transparency, and ensuring fair protection of the rights of all participants in the process.
30.04.2025
