Debt restructuring bill reaches Russia’s State Duma
MOSCOW, August 1 (RAPSI) – Russia’s government submitted a bill introducing debt restructuring procedure for bankruptcy cases to the State Duma, press service for the Cabinet of Ministers reported Tuesday.
The initiative is aimed to expand the use of rehabilitation mechanisms in relation to troubled companies.
The bill provides that debtors or creditors will be able to file with a commercial court not only a bankruptcy petition but also an application for introducing debt restructuring procedure that could prevent a debtor from bankruptcy proceedings, the document reads.
Under the draft law, a debtor would be obliged to propose a plan on restructuring of debts within 4 months after the initiation of debt restructuring process. Creditors, authorized bodies, emergency managers, founding parties, debtor’s employee representatives and third parties including central and local authorities would be also granted the right to suggest a loan restructuring plan.
Amendments drafted by the Economy Ministry are proposed to the Federal Law “On Bankruptcy” and certain legal acts of Russia concerning debt restructuring procedure in cases of companies’ bankruptcy.
The government approved the bill on July 27.