In brief
As of 19 October 2020, the changes to the Bankruptcy Code of Ukraine became effective.
What’s new
From 17 October 2020, and for the quarantine period, the following changes are introduced in the bankruptcy procedure:
IP licensing and insolvency reform: ipso facto clauses
Licensors of intellectual property rights may soon be unable to terminate licenses where the licensee has gone into an insolvency process.
What are ipso facto clauses and why do they matter?
In brief
As of 19 October 2020, the changes to the Bankruptcy Code of Ukraine became effective.
What’s new
From 17 October 2020, and for the quarantine period, the following changes are introduced in the bankruptcy procedure:
How was the CIGB received?
Were there any concerns?
What has changed?
What else was proposed?
What's next?
A recap
After the Corporate Insolvency and Governance Bill (CIGB) was published on 20 May 2020, it raced through the House of Commons and House of Lords and, on 26 June 2020 (in under 6 weeks) came into force as the Corporate Insolvency and Governance Act 2020 (CIGA), with certain of the temporary measures taking effect from 1 March 2020.
How was the CIGB received?
Licensors of intellectual property rights may soon be unable to terminate licences where the licensee has gone into an insolvency process.
What are ipso facto clauses and why do they matter?
Permanent measures
Temporary measures
The much anticipated Corporate Insolvency and Governance Bill (the Bill) was published on 20 May 2020.
The much anticipated Corporate Insolvency and Governance Bill (the Bill) was published on 20 May 2020.
The proposed legislation is split into two broad categories: temporary provisions brought about as a result of COVID-19 and permanent provisions which will result in fundamental changes to UK insolvency law. The proposals, both temporary and permanent, reflect a shift towards a more debtor-friendly regime.
Building on measures already introduced in the Coronavirus Act – such as the moratorium on lease termination for non-payment of rent until 30 June 2020 – the Government announced that further emergency measures will be introduced.
Statutory demands and winding up petitions issued to commercial tenants to be temporarily voided
The forthcoming Corporate Insolvency and Governance Bill will include restrictions on the use of statutory demands and winding up petitions to recover sums owed by tenants.
The Code
On 21 October 2019 the Bankruptcy Code of Ukraine shall come into legal force ("Code"). The rules on operation of the electronic trade system within bankruptcy proceedings shall become effective earlier, on 21 July 2019.
The Code amends the bankruptcy procedure of legal entities and introduces the bankruptcy procedure for individuals (which was not previously applicable in Ukraine).
New Provisions
The most significant changes are the following: