Karina Epifantseva shares her opinion on the new bill
Karina Epifantseva, head of crisis management and bankruptcy practice, shared her opinion on the bill that introduces a new rehabilitation procedure – debt restructuring.
"As a rule, bankruptcy is the highest point of conflict. It is utopia to expect real reconciliation between the debtor and the creditor, mutual concessions and trust. If our goal is to keep alive an economic entity in the form of a company that will pay taxes, provide jobs, and so on, then why not give this company to creditors for the debts of the previous management.
I believe that the conversion of creditors' claims into shares can be an effective rehabilitation procedure. Although there may be difficulties, since the creditors who have not participated in the business, or perhaps were not familiar with it at all, will now be forced to conduct it and make decisions together.
The proposed bill allows the inclusion of a condition for converting creditors' claims into shares in the charter capital of the debtor company in the restructuring plan. Moreover, if the controlling person has abused its rights, the consent of the debtor's members to such conversion is not required."