In late December 2014, Russia adopted major changes to its insolvency (bankruptcy) law. Critically, the changes introduced the long-awaited regulation of individual insolvency (personal bankruptcy), with the aim of closing the regulatory gap and supporting individual debtors struggling during Russia's economic downturn.1 Some time has passed since the initial draft law on individual insolvency (personal bankruptcy) was first delivered to the Russian Parliament back in 2012.

Настоящий обзор представляет собой краткое изложение последних изменений в российском законодательстве и не является юридической консультацией. За консультацией по конкретному вопросу следует обращаться непосредственно к юристу. Уайт энд Кейс Романов пер., д. 4 125009 Москва Россия + 7 495 787 3000 + 7 495 787 3001 Изменения в законодательстве о банкротстве Март 2015 ClientAlert Финансовая реструктуризация и банкротство В декабре 2014 г. были внесены изменения в Федеральный закон “О несостоятельности (банкротстве)” № 127-ФЗ от 26 октября 2002 г. (“Закон о банкротстве”).

Постановление Девятого арбитражного апелляционного суда от 19.06.2012

Участники спора

Конкурсный управляющий

ЗАО «Цифровая электроника» ЗАО «Цифровая электроника» (Должник)

ОАО «СИТРОНИКС» (сторона оспариваемой сделки с Должником, Кредитор)

Фабула дела

Resolution of the Ninth Commercial (‘Arbitration’) Court of Appeal

dated 19 June 2012

Parties in dispute

Receiver of Digital Electronics CJSC

Digital Electronics CJSC (the “Debtor”)

SITRONICS OJSC (a party to the challenged transaction with the Debtor, the “Creditor”)

Narrative

The issue of the fee for an insolvency practitioner affects every single person involved in insolvency (bankruptcy) proceedings. It is known that the receiver’s fee is generally paid out of the debtor’s assets. Accordingly, the higher the fee, the fewer the assets that remain to satisfy creditors’ claims, restore the debtor to solvency and distribute the liquidation surplus among the members.

Specifics of enforcing the consequences of the invalidity of a transaction whereby a pledgeholder leaves pledged property in its ownership.

(ruling No. VAS-14907/11 dated 20 March 2012)

By the above ruling, the Supreme Arbitration Court (SAC) has actually reinforced the specifics of enforcing the consequences of a transaction transferring a debtor’s pledged property being invalid if it is not possible to restore the parties to their initial position.

28 June 2013 the Russian President signed Federal Law No. 134-FZ amending a number of laws in relation to combating illegal financial operations.

The Law amended, in particular, the Law on Banks and Banking Activity, the Anti-Money Laundering Law, the Criminal Code and the Code of Administrative Offenses, the Law on State Registration of Legal Entities, the Bankruptcy Law, laws regarding certain financial organizations, and the Tax Code. Below is a summary of the key changes (save for those made to the Tax Code).

New Law on "Amendments to the Law on Insolvency (Bankruptcy) and Articles 17 and 223 of the Arbitrage Procedural Code with respect to establishment of special rules for bankruptcy of developers attracting money from participants in construction" was adopted on July 12, 2011 (the "Amendments"). Most of the Amendments were introduced as a special chapter No. 7 named "Bankruptcy of Developers" into the Federal law on Insolvency (Bankruptcy) No. 127-FZ as of 26 October 2002 (as amended) (the "Bankruptcy Law").

On 19 August 2011, the Ministry of Economic Development of the Russian Federation published on its official website a draft order on establishing the procedure for entering information on bankruptcies in the Unified Federal Register (the "Order").

Specifically, the Order:

1. INTRODUCTION

A simple, clear and effective insolvency regime is a vital element in attracting both domestic and foreign investment in a jurisdiction like Russia. To be effective, an insolvency regime has to balance the interests of various classes of creditors, as well as the interests of creditors generally in relation to other interested parties, such as shareholders or participants. An insolvency regime is expected to give the debtor an opportunity to discharge its obligations and continue its business activity.