Journal article Open Access

Peculiarities of Pre-Trial Sanation under the Code of Bankruptcy Procedures

V.O. Kyseliova


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        <foaf:name>V.O. Kyseliova</foaf:name>
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    <dct:title>Peculiarities of Pre-Trial Sanation under the Code of Bankruptcy Procedures</dct:title>
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    <dct:issued rdf:datatype="http://www.w3.org/2001/XMLSchema#gYear">2019</dct:issued>
    <dcat:keyword>legal entity, bankruptcy, The Code of bankruptcy procedures, rehabilitation, pre-trial sanation, solvency restoration.</dcat:keyword>
    <dct:issued rdf:datatype="http://www.w3.org/2001/XMLSchema#date">2019-11-25</dct:issued>
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    <dct:description>&lt;p&gt;The article is devoted to the scientific and legislative definition of the concept of &amp;quot;sanation of the legal entity&amp;quot;. The provisions of the new Code of bankruptcy procedures on the peculiarities of the sanation procedure before the opening of bankruptcy proceedings are considered and analyzed. The main advantages of pre-trial sanation were taken into account as a new mechanism for bankruptcy prevention and restoration of the financial stability of the legal entity for the long term. Debt insolvency statistics are analyzed.&amp;nbsp; Bankruptcy prerequisite revealed. Attention is drawn to the fact that the introduction of the new Bankruptcy Code introduces new opportunities for business safeguards, including pre-trial sanation. The procedure of pre-trial sanation was considered and studied in detail, its difference from the sanation in the bankruptcy case. Many different scientific definitions of the concept of &amp;quot;remediation&amp;quot; are considered. The feasibility of treating remediation by many methods has been analyzed. The conditions under which the procedure of sanation or pre-trial sanation can be considered successful are indicated. The author&amp;#39;s attitude to the idea of pre-trial readjustment, its benefits in terms of saving time and resources are revealed. The Bankruptcy Code has been analyzed and certain features of pre-trial sanation have been identified: who initiates pre-trial sanation procedure, which is a &amp;quot;sanation plan&amp;quot;, for which the debtor convenes a general meeting of creditors, the difference being &amp;quot;secured&amp;quot; and &amp;quot;unsecured&amp;quot; creditors, the special role of the Economic Court in the gradual implementation of pre-trial sanation, for which the arbitration manager, in which case the court refuses to approve the pre-trial sanation plan, what are the consequences of implementing the sanation plan.&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&lt;em&gt; &lt;/em&gt;&lt;em&gt;&amp;nbsp;&amp;nbsp; &amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/em&gt;&lt;/p&gt;</dct:description>
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