Фото: Filing bankruptcy for utility companies

«Everyone who cooperates with us frees himself from onerous loans. We process bankruptcy "on a turnkey basis" throughout Ukraine!»

Kolesnyk Ilya

Assistant lawyer

Specialist in bankruptcy of individuals and legal entities. Provides legal support in bankruptcy procedures for individuals, private limited liability companies, legal entities, as well as closing executive proceedings, concluding restructuring and settlement agreements with financial institutions

Contact now

Filing bankruptcy for utility companies

Reading time: 3 min.

Utilities play a critical role in providing basic needs of citizens. They are responsible for water supply, heat supply, garbage collection, housing maintenance and other important services. However, in today's economic challenges, bankruptcy proceedings may be a necessary step for the recovery of the utility sector.

 

Peculiarities of the bankruptcy procedure of utility enterprises

The bankruptcy procedure for utility companies has a number of features:

  • Social responsibility:

In contrast to private companies, the bankruptcy of utility companies must take into account the social consequences and ensure the continuity of service provision.

  • Participation of local authorities:

Local self-government bodies are often actively involved in the process to protect the interests of the community.

  • Restrictions on liquidation:

Legislation may limit the possibility of complete liquidation of enterprises that provide critical services.

  • Complexity of asset valuation:

Utilities often own specific assets, the value of which is difficult to estimate on the market.

Bankruptcy of utility companies is a complex process that requires careful compliance with the law and taking into account the interests of the community. Key aspects are ensuring the continuity of service provision, protecting the rights of creditors and employees, as well as efficient use of communal property.

Bankruptcy of utility companies

Bankruptcy procedure

The bankruptcy procedure of a utility company consists of the following stages:

  • Submission of an application to open bankruptcy proceedings.
  • Opening of proceedings by the court and appointment of a property manager.
  • Identification of creditors and creation of a register of creditors' claims.
  • Holding meetings of creditors and choosing rehabilitation or liquidation.
  • Implementation of the selected procedure.
  • Completion of the bankruptcy procedure and adoption of the relevant decision by the court.

 

Potential benefits of bankruptcy

Bankruptcy, if done right, can be a path to recovery in the utility sector. It allows:

  • Restructure debts and improve the company's financial condition.
  • Optimize management and increase work efficiency.
  • Attract new investments for infrastructure modernization.
  • Revise the tariff policy and make it more transparent.

Challenges and alternatives to bankruptcy

However, the utility bankruptcy process requires careful planning and a balanced approach. It is necessary to ensure a balance between financial recovery and social responsibility, between the interests of creditors and the needs of the community.

It is also important to consider alternative ways of solving the financial problems of utility companies, such as reorganization, attracting private investors through public-private partnership mechanisms, or providing state support for infrastructure modernization.

Filing bankruptcy for utility companies

Confident defense in complex legal matters

To avoid potential risks and ensure a successful resolution of the case, contact the experienced specialists of the Prykhodko and Partners law firm. Our experts will conduct a comprehensive analysis of your situation, develop a detailed plan for further actions and provide professional support at all stages of the process.

By choosing "Prykhodko and partners", you will get not only the desired result, but also confidence and peace of mind even in the most difficult legal situations.

Calculate the price of assistance:

1 question

Have other lawyers handled your case?

Yes
No

2 question

Are you in Kyiv or Kyiv region?

Yes
No

3 question

Do you need legal assistance urgently?

Yes
No

Assistant lawyer

Specialist in bankruptcy of individuals and legal entities. Provides legal support in bankruptcy procedures for individuals, private limited liability companies, legal entities, as well as closing executive proceedings, concluding restructuring and settlement agreements with financial institutions

Contact now
How helpful was the article? Rate:

5

Count of grades:

12

20%
discount
If we do not
call back
during the day
Consultation
Law Company
Leave a request for legal assistance right now:
The best lawyers
Fair price
We work quickly
Online / offline consultation