Liquidation of the company under the bankruptcy procedure

One of the ways of writing off problematic debt for the company’s obligations is its liquidation under the bankruptcy procedure of legal entities.

How to liquidate a company under the bankruptcy procedure in Ukraine?

The liquidation is carried out in a court-ordered manner based on an application for insolvency, which can be submitted to the Commercial Court both by the representative of the debtor-legal entity at the place of its registration, and by the creditor who declares his claims against the debtor.

Evidence of the company’s insolvency, a list of creditors, a list of its assets and liabilities, evidence of arrears and other documents must be attached to the application.

The liquidation procedure takes up to one year on average and begins with the opening of proceedings within 5 working days after the application is submitted to the court.

Our lawyers are ready to complete the bankruptcy procedure for a legal entity in Ukraine.

After the opening of the proceedings, the court by resolution introduces the procedure for the disposal of property for a period of up to 170 days, within which the assets and income of the legal entity are accounted for in order to find out the further possibility of it fulfilling its obligations to repay debts. Analysis of the financial situation and consideration of creditors’ claims in court sessions at this stage allows us to reach a conclusion about the transition to the next procedure of rehabilitation or liquidation of the company.

The court recognizes the legal entity as bankrupt and opens the liquidation procedure if it is no longer possible to restore solvency. From this time, the company’s economic activity is completely stopped, property seizures are removed, and the accrual of interest on liabilities is stopped. A separate person is appointed to manage the liquidation, who is obliged to form a liquidation mass from the debtor’s existing assets within the time limit of the procedure, make a monetary assessment of them and further sell them at an auction in order to satisfy the demands of creditors in the specified order.

After settlement with all obligations, the court closes the proceedings on the basis of the liquidation manager’s report, and the company is considered to have passed the liquidation procedure and is bankrupt.

Legally, the costs to be borne by the company during the liquidation proceedings include the costs of paying the arbitration administrator’s fee, the amount of which is 3 times the minimum wage per month. In order to open the proceedings in the case, the debtor is obliged to add to the application for insolvency proof of payment for the services of the arbitration manager in the amount of 3 times the minimum wage for 3 months of performance of the powers.

Specialists of the Prikhodko&Partners law office will help you assess all the risks that may be present in the liquidation procedure, provide a comprehensive consultation based on the case materials, and will be ready to provide turnkey documentary and procedural support throughout the duration of the procedure. Liquidation may prove to be the most effective way to resolve problematic debt and terminate the company’s activities. In order to receive a qualified opinion and enlist the support of lawyers, leave an application on the website.