Dmytro Moshenets, Investohills Vesta Lawyer, Made a Speech at the 8th Restructuring and Bankruptcy Forum

Dmytro Moshenets, Head of the Bankruptcy Unit of the Special Asset Management Department at Investohills Vesta Financial Company, took part in the 8th Restructuring and Bankruptcy Forum that took place on July 13 online. The Forum was hosted by the Yurydychna Praktyka newspaper.

Dmytro Moshenets spoke at the Forum’s closing session dedicated to the most relevant and problematic aspects of bankruptcy proceedings.

For instance, he focused the listeners’ attention on the types of businesses threatened by bankruptcy after the war and the ways to prevent it.

He expressed certainty that such processes would occur on a mass scale. All parties to the bankruptcy process will face issues because many matters have not been settled by law.

The speaker dwelled on the criteria of the businesses that can face bankruptcy in the future. He identified four groups of such businesses:

  • Group I – businesses whose assets were substantially damaged or destroyed;
  • Group II – businesses that are located or have offices/branches in the temporarily occupied territory not controlled by the Ukrainian government after February 24, 2022;
  • Group III – businesses that have been taken by russia’s armed forces and other unlawful armed formations and are under their control;
  • Group IV – businesses located in the territory controlled by Ukraine that cannot engage in business.

Dmytro Moshenets highlighted that creditors of businesses whose property had been damaged or destroyed faced losses right now.

“In the future, we can potentially see bankruptcies not among the businesses that have liabilities under loans but among creditors becoming insolvent due to the debtor’s failure to meet the liabilities.

In the speaker’s opinion, draft law No. 7442 does not contribute to preventing bankruptcies on a mass scale. Legislators must start coming up with changes now, for instance, by developing compensatory mechanisms.