THE CODE OF UKRAINE ON INSOLVENCY PROCEEDINGS

of October 18, 2018 No. 2597-VIII

This Code establishes conditions and procedure for recovery of solvency of the debtor - the legal entity or recognition by his bankrupt for the purpose of satisfaction of requirements of creditors, and also recovery of solvency of physical person.

Book the first. General part

Section I. General provisions

Article 1. Determinations of terms

For the purposes of of this Code terms are used in such value:

the arbitration manager - the physical person who received the appropriate certificate and information on which is entered in the Unified register of arbitration managers of Ukraine;

bankruptcy - the inability of the debtor recognized by economic court, except the insurer or credit union to recover the solvency by means of the procedure of sanitation and restructuring and to extinguish established according to the procedure, determined by this Code, monetary claims of creditors differently, than through application of the liquidating procedure or procedure of repayment of debts of the debtor, and also reference of the insurer or credit union according to the decision of the National Bank of Ukraine to category insolvent according to the Law of Ukraine "About insurance" or the Law of Ukraine "About credit unions";

the debtor - the legal entity or physical person, including physical person - the entrepreneur, incapable to fulfill the monetary commitments which completion date came;

monetary commitment (debt) - the obligation of the debtor to pay to the creditor certain sum of money according to the civil agreement and on other bases, stipulated by the legislation Ukraine. Also obligations on tax payment, charges (obligatory payments), insurance premiums for obligatory national pension and other social insurance belong to monetary commitments; the obligations arising owing to impossibility of performance of agreement obligations of storage, the contract, hiring (lease), rent, etc. and which shall be expressed in monetary units. The structure of monetary commitments of the debtor, including obligations concerning tax payment, charges (obligatory payments), insurance premiums for obligatory national pension and other social insurance, do not join penalty (penalty, penalty fee) and other financial sanctions determined for date of filing of application in economic court, and also the obligations which arose owing to damnification of life and to health of citizens, obligations on payment of award, the obligation to founders (participants) of the debtor - the legal entity, arisen from such participation. The structure and the size of monetary commitments, including the size of debt for the transferred goods, the performed works and the provided services, the amount of the credits taking into account percent which the debtor shall pay are determined on the date of giving in economic court of the statement for initiation of proceeedings about bankruptcy (insolvency) if other is not established by this Code. In case of filing of application about opening of proceeedings about bankruptcy (insolvency) the size of monetary commitments is determined on the date of giving in economic court of such statement;

interested persons concerning the debtor - the legal entity created with the assistance of the debtor, the legal entity exercising control over the debtor, legal entity or physical person over which control is exercised by the debtor, the legal entity with whom the debtor is under control of the third party, owners (participants, shareholders) of the debtor, heads of the debtor, persons who are part of governing bodies of the debtor, the chief accountant (accountant) of the debtor, including discharged from office in three years prior to opening of proceeedings about bankruptcy and also persons who are in the related relations with specified persons and the physical person - the debtor namely: spouses and their children, parents, brothers, sisters, grandsons, and also other persons concerning whom there are reasonable bases to consider them interested; for the purposes of of this Code interested persons concerning the arbitration manager or creditors persons are recognized the same list, as well as interested persons concerning the debtor;

considerable transactions - transactions concerning property (works, services) which market value on the date of transaction makes 10 and more percent of asset cost of the debtor according to the last annual financial reporting. If instead of several transactions the debtor could make one considerable transaction, then each of such transactions is considered considerable;

the managing director of realization - the arbitration manager appointed by economic court in the case of insolvency of physical person for implementation of realization of property of the bankrupt and satisfaction of requirements of creditors;

the managing director of restructuring - the arbitration manager appointed by economic court in the case of insolvency of physical person for implementation of debt restructuring of the debtor;

the managing director of sanitation - the arbitration manager, and in the cases provided by this Code - the debtor's head appointed by economic court for implementation of the procedure of sanitation of the debtor;

the creditor - legal entity or physical person, and also the monitoring body authorized according to the Tax code of Ukraine to perform actions for ensuring repayment of tax debt and shortage for payment of single fee on obligatory national social insurance within the powers, and other state bodies which have requirements concerning monetary commitments to the debtor, and also the administrator on bond issue which according to the Law of Ukraine "About the capital markets and the organized goods markets" acts for the benefit of bondholders who have the requirements supported in accordance with the established procedure by the documents concerning monetary commitments to the debtor; secured creditors are creditors whose requirements to the debtor or other person are provided with pledge of property of the debtor; competitive creditors are creditors according to requirements to the debtor which arose before opening of proceeedings about bankruptcy and which accomplishment is not provided with pledge of property of the debtor; the current creditors are creditors according to requirements to the debtor which arose after opening of proceeedings about bankruptcy;

the liquidator - the arbitration manager appointed by economic court for implementation of the liquidating procedure;

insolvency - insolvency of the debtor (other, than the insurer or credit union) to fulfill after approach of fixed term monetary commitments before creditors not differently, as because of application of the procedures provided by this Code or the insolvency of the insurer established by the National Bank of Ukraine according to the Law of Ukraine "About insurance" or insolvency of credit union according to the Law of Ukraine "About credit unions";

official promulgation - promulgation of data on case on bankruptcy on the official web portal of judicial authority of Ukraine;

the extinguished requirements of creditors - the met requirements of creditors, and also obligations stopped according to this Code;

repayment of debts of the debtor - judicial process on the case of insolvency of physical person which is applied for the purpose of satisfaction of requirements of creditors for the realization account of property of the debtor declared bankrupt according to the procedure, established by this Code;

transactions concerning which there is interest, - transactions which parties are interested persons from the debtor, the arbitration manager or creditors;

the employee representative of the debtor - person authorized by general meeting (conference) at which there are at least two thirds of the number of staff of workers of the debtor, or the relevant decision of primary trade-union organization of the debtor (and in the presence of several primary organizations - their joint decision) to represent the interests of workers of the debtor during proceeedings about bankruptcy with the right of advisory vote;

debt restructuring of the debtor - judicial process on the case of insolvency of physical person which is applied for the purpose of recovery of solvency of the debtor by change of method and procedure for execution of its obligations according to the restructuring plan of debts of the debtor;

the manager of property - the arbitration manager appointed by economic court for implementation of the procedure of the order property;

the automated "bankruptcy and insolvency" system - set of the program and technical and telecommunication means providing collection, storage, accounting, search, generalization, provision of data on course of production on the case of bankruptcy (insolvency) and financial and economic indicators of the debtor, forming of the Unified register of debtors concerning which proceeedings about bankruptcy (insolvency), the Unified register of arbitration managers of Ukraine, functioning of electronic office of the arbitration manager and protection against unauthorized access are open. Competitive creditors, secured creditors, investors, and also the current creditors (have right of access to information on the debtor containing in the closed part of the Unified register of debtors concerning whom proceeedings about bankruptcy are open (insolvency) from the moment of adoption by economic court of the resolution on recognition of the debtor by the bankrupt) according to the procedure, determined by state body concerning bankruptcy;

party litigants about bankruptcy (insolvency) - competitive creditors (the chairman of creditor committee), secured creditors, the debtor (bankrupt)

the authorized person of founders (participants, shareholders) of the debtor - person authorized by the supreme body of management of the debtor to represent the interests of founders during proceeedings about bankruptcy with the right of advisory vote;

participants on the case of bankruptcy (insolvency) - the parties, the arbitration manager, state body concerning bankruptcy, other participants of case on bankruptcy, concerning the rights or obligations of which exists dispute, and also in the cases provided by this Code, Fund of state-owned property of Ukraine, the National Bank of Ukraine, the National commission on securities and the stock market, the representative of local government body, the employee representative of the debtor, the authorized person of founders (participants, shareholders) of the debtor;

The term "the portal of electronic services of legal entities, physical persons-entrepreneurs and public forming" is used in the value given in the Law of Ukraine "About state registration of legal entities, physical persons entrepreneurs and public forming".

The terms "real conflict of interest" and "potential conflict of interest" are used in this code in the values given in the Law of Ukraine "About prevention of corruption"

The term "budget institution" is used in the value given in the Budget code of Ukraine.

The terms "the administrator on bond issue", "derivative contract", "general agreement", "meeting of bondholders", "professional participant of the capital markets" and "professional participant of the organized goods markets" are used in this Code in the values given in the Law of Ukraine "About the capital markets and the organized goods markets".

Article 2. The legislation regulating bankruptcy proceeding

1. Bankruptcy proceeding is regulated by this Code, the Economic Procedure Code of Ukraine, other laws of Ukraine.

Application of provisions of the Economic Procedure Code of Ukraine and other legal acts of Ukraine is performed taking into account the features provided by this Code.

2. The legislation on recovery of solvency of the debtor or recognition by his bankrupt does not extend to banks which are removed from the market or are liquidated according to the laws of Ukraine "About banks and banking activity" and "About system of guaranteeing household deposits".

Proceeedings about recognition of the issuer of mortgage bonds by insolvent (bankrupt) are performed according to the procedure, provided by this Code, taking into account the provisions of the law of Ukraine "About mortgage bonds".

Proceeedings about recognition of institute of joint investment by insolvent (bankrupt) are performed according to the procedure, provided by this Code, taking into account the provisions of the law of Ukraine "About institutes of joint investment".

Proceeedings about recognition of the subject of business activity which is agreement party concerning financial instruments and/or the party of one or several derivative contracts by insolvent (bankrupt) are performed taking into account features, stipulated by the legislation.

If on bond issue the administrator on bond issue, bankruptcy proceeding of debtors who are issuers of the corresponding bonds is appointed, and also debtors who provide providing on bonds (further - the debtor having obligations on bonds) it is regulated by this Code taking into account the features established by the Law of Ukraine "About the capital markets and the organized goods markets".

3. Bankruptcy proceeding of separate categories of debtors is regulated taking into account the features provided by this Code.

4. Bankruptcy proceeding of debtors - the state companies, the state non-commercial enterprises and budgetary institutions, and also sanitation of such debtors before opening of proceeedings about bankruptcy are not allowed.

5. Bankruptcy proceeding of debtors who perform the activities connected with the state secret is performed taking into account features, stipulated by the legislation about the state secret.

6. Bankruptcy proceeding (insolvency) with participation of nonresident creditors is regulated by this Code if other is not provided by international treaties of Ukraine which consent to be bound is provided by the Verkhovna Rada of Ukraine.

7. The procedure for execution in Ukraine of judgments of courts of foreign states is determined by cases on bankruptcy by international treaties of Ukraine which consent to be bound is provided by the Verkhovna Rada of Ukraine.

In case of lack of international treaties of Ukraine of decision of the courts of foreign states on cases on bankruptcy are recognized in the territory of Ukraine by the principle of reciprocity if other is not provided by the law.

Article 3. State body concerning bankruptcy

1. State body concerning bankruptcy:

promotes creation of the organizational, economic, other conditions necessary for implementation of procedures of recovery of solvency of the debtor or recognition by his bankrupt, including insolvency proceedings of the state and economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state;

will organize system of preparation, retraining and advanced training of arbitration managers;

establishes requirements for receipt of the certificate on the right to implementation of activities of the arbitration manager;

creates and keeps the Unified register of arbitration managers of Ukraine, the Unified register of debtors concerning which proceeedings about bankruptcy are open (insolvency), being components of the automated "bankruptcy and insolvency" system, and establishes procedure for submission of the data (information) necessary for maintaining the specified registers";

establishes procedure of control of activities of arbitration managers, checks of the organization of their work, observance of requirements of the legislation by them concerning bankruptcy;

establishes procedure for carrying out the analysis of financial and economic condition of subjects of managing concerning availability of signs of dummy bankruptcy, bringing to bankruptcy, concealment of steady insolvency, illegal actions in case of bankruptcy and will organize carrying out such analysis when opening bankruptcy proceeding of the state companies and economic societies in which authorized capital more than 50 percent of shares (shares) belong to the state;

determines and approves approximate form of the plan of sanitation, restructuring;

constitutes on requests of court, prosecutor's office or other authorized body of the conclusion about availability of signs of dummy bankruptcy, bringing to bankruptcy, concealment of resistant insolvency, illegal actions in case of bankruptcy;

the paragraph the eleventh is excluded according to the Law of Ukraine of 03.10.2019 No. 157-IX;

develops and approves standard documents on carrying out insolvency proceedings, methodical recommendations;

determines requirements to form and procedure for maintaining the register of requirements of creditors;

performs other powers provided by the law.

Article 4. Measures for the prevention of bankruptcy of the debtor - the legal entity and extrajudicial procedures

1. Founders (participants, shareholders) of the debtor, the owner of property (body, authorized to manage property) of the debtor, the central executive bodies, bodies of the Autonomous Republic of Crimea, local government bodies within the powers shall take timely measures for prevention of bankruptcy of the debtor.

2. In case of signs of bankruptcy the head of the debtor shall send to founders (participants, shareholders) of the debtor, the owner of property (to body, authorized to manage property) of the debtor of the data on availability of signs of bankruptcy.

3. Founders (participants, shareholders) of the debtor, owners of property (body, authorized to manage property) of the debtor, the debtor's creditors, other persons within measures for the prevention of bankruptcy of the debtor can provide to the debtor financial aid in the amount of, sufficient for repayment of monetary commitments of the debtor before creditors, including obligations concerning tax payment and charges (obligatory payments), insurance premiums for obligatory national pension and other social insurance and recovery of solvency of the debtor (sanitation of the debtor before opening of proceeedings about bankruptcy).

4. In case of receipt of financial aid by the debtor he undertakes the corresponding obligations to persons which gave such help, according to the procedure, established by the law.

5. Sanitation of the debtor before opening of proceeedings about bankruptcy is system of actions for recovery of solvency of the debtor which the founder can perform (the participant, the shareholder) the debtor, the owner of property (body, authorized to manage property) the debtor, other faces for the purpose of prevention of bankruptcy of the debtor by acceptance of organizational and economic, managerial, investment, technical, financial and economic, legal actions according to the legislation before opening of proceeedings on bankruptcy.

6. Sanitation of the state companies before opening of proceeedings about bankruptcy is performed at the expense of means of the government budget, the state companies and other financing sources. The amount of means for carrying out sanitation of the state companies at the expense of means of the government budget is annually established by the law on the Government budget of Ukraine.

Conditions and procedure for carrying out sanitation of the state companies before opening of proceeedings about bankruptcy at the expense of other financing sources are approved with the subject of management of objects of state-owned property according to the procedure, established by the Cabinet of Ministers of Ukraine.

Sanitation of the state companies before opening of production in the case of bankruptcy is performed according to this Code.

7. Measures for the prevention of bankruptcy of the debtor insurer are taken according to the procedure, determined by the Law of Ukraine "About insurance".

8. Measures for prevention of bankruptcy of the debtor - credit union are accepted according to the procedure, determined by the Law of Ukraine "About credit unions"

Article 5. Sanitation of the debtor before opening of proceeedings about bankruptcy

1. The debtor according to the decision of founders (participants, shareholders) of the debtor has the right to initiate the procedure of sanitation before opening of proceeedings about bankruptcy.

Sanitation of the debtor before opening of production in the case of bankruptcy is performed according to the plan of sanitation of the debtor before opening of production in the case of bankruptcy (further - the plan of sanitation).

2. In respect of sanitation are determined:

the sizes, procedure and repayment periods of requirements of creditors who take part in sanitation;

actions for accomplishment of the plan of sanitation and supervision of accomplishment of the plan of sanitation;

amount of powers of the managing director of sanitation (in case of its appointment).

The plan of sanitation can provide:

separation of the creditors participating in sanitation into categories depending on type of requirements and availability (absence) of providing requirements of creditors;

different conditions of satisfaction of requirements of creditors of different categories;

actions for receipt of loans or credits;

the conditions provided by part two of article 51 of this Code.

The liquidating analysis which confirms advantage for creditors of accomplishment of the plan of sanitation in comparison with liquidation of the debtor is attached to the plan of sanitation. The financial analysis which confirms capability of the debtor can be applied to the plan of sanitation to satisfy conditions of the plan of sanitation.

3. If the plan of sanitation provides payment by installments or delay or forgiveness (write-off) of debts or their part, the plan of sanitation is considered the approved body of collection regarding satisfaction of requirements for taxes, charges (obligatory payments) on the terms of the plan of sanitation without the need for vote of body of collection. At the same time the tax debt which arose in time which preceded three years about day of carrying out creditor meeting is recognized hopeless and is written off, and the tax debt which arose later rassrochivatsya (is deferred) or written off on the terms of the plan of sanitation which shall be not worse, than condition of satisfaction of requirements of creditors who voted for approval of the plan of sanitation.

Conditions of the plan of sanitation concerning satisfaction of requirements of creditors who did not take part in vote or voted against approval of the plan of sanitation of the debtor shall be not worse, than conditions of satisfaction of requirements of creditors who voted for approval of the plan of sanitation.

The plan of sanitation does not join requirements of the first and second queues of satisfaction of requirements of the creditors determined by this Code.

Requirements of creditors which were not changed or restructured by the debtor can be excluded by the debtor from the plan of sanitation. Approval and implementation of the plan of sanitation are not considered as agreement breach between the debtor and the creditor who does not take part in the plan of sanitation.

4. For approval of the plan of sanitation the debtor convokes creditor meeting by the written notice of all creditors who according to the plan of sanitation participate in sanitation. At the same time the debtor provides to these creditors the plan of sanitation and places the announcement of carrying out creditor meeting on the official web portal of judicial authority of Ukraine. Creditor meeting is convoked not earlier than in 10 days after placement of such announcement.

If the plan of sanitation provides participation in sanitation of secured creditors, such plan of sanitation shall be approved in each category by secured creditors who own two thirds of voices of creditors of the total amount of the secure requirements included in the plan of sanitation in such category. At the same time requirements of the mortgage creditors who are interested persons concerning the debtor are not considered for the purposes of vote in case of approval of the plan of sanitation.

If the plan of sanitation provides change of priority of requirements of secured creditors, the plan of sanitation shall be approved by each such creditor.

According to the statement of the mortgage creditor the plan of sanitation joins regulations on refusal of the mortgage creditor of providing. Such creditor is unsecured creditor regarding those requirements according to which he refused providing.

The plan of sanitation shall be approved in each category by unsecured creditors who own more than 50 percent from the total amount of the unsecured requirements included in the plan of sanitation in such category. At the same time requirements of unsecured creditors which are interested persons concerning the debtor are not considered for the purposes of vote in case of approval of the plan of sanitation.

If the plan of sanitation provides satisfaction of requirements of the certain creditor immediately after approval of the plan of sanitation, such requirements are not considered for the purposes of vote in case of approval of the plan of sanitation.

The plan of sanitation does not influence requirements of the creditor to the third parties if the creditor with such requirements voted against approval of the plan of sanitation. Approval by court of the plan of sanitation of rather initial obligation does not stop the related additional obligations according to Article 604 of the Civil code of Ukraine if the pawnbroker voted against such plan.

5. The debtor within five days from the date of approval by creditors of the plan of sanitation submits to economic court in the location of the debtor the statement for approval of the plan of sanitation.

Are enclosed to the application for approval of the plan of sanitation:

plan of sanitation;

the documents confirming approval of the plan of sanitation;

the list of creditors with indication of their name or name, the location or the residence or stay, identification code or registration number of accounting card of the taxpayer (in the presence) and outstanding amounts.

For filing of application about approval of the plan of sanitation court fee is levied.

6. The economic court takes out determination about acceptance or refusal in adoption of the statement for approval of the plan of sanitation within five days from the date of its obtaining.

In determination about adoption of the statement to consideration time and the venue of judicial session on case and introduction of the moratorium on satisfaction of requirements of creditors which are included in the plan of sanitation are specified. The copy of the resolution goes to the debtor, creditors and investors who according to the plan of sanitation participate in sanitation.

Determination about acceptance to consideration of the application about approval of the plan of sanitation is not subject to appeal.

The economic court refuses adoption of the statement for approval of the plan of sanitation if:

the plan of sanitation does not conform to requirements of this Code;

case is not cognizable to this economic court;

concerning the debtor production in the case of bankruptcy is open;

the legal entity - the debtor is stopped in the procedure established by the legislation.

About refusal in adoption of the statement for approval of the plan of sanitation determination which goes to the applicant together with the statement and documents attached to it is taken out.

The economic court no later than five days from the date of receipt of the statement for approval of the plan of sanitation returns it and the documents attached to it on the bases, stipulated in Article 174 Economic Procedure Codes of Ukraine taking into account requirements of this Code.

7. The economic court publishes the notification on acceptance to consideration of the application about approval of the plan of sanitation on the official web portal of judicial authority of Ukraine. The notification shall contain the name of the debtor and his identification code, file number, the name of economic court in which production there is case, and date of judicial session on case.

According to the statement of the debtor or creditor in economic court within five days from the date of adoption of the statement holds judicial session on case for consideration of questions of appointment of the managing director of sanitation, taking measures according to article 40 of this Code, restriction of operation of the moratorium on satisfaction of requirements of creditors.

The economic court appoints the managing director of sanitation if appointment of such managing director and amount of its powers are determined by the plan of sanitation. The candidate for the managing director of sanitation is elected by attendees at general meeting of creditors whose requirements in total constitute more than 50 percent of total amount of the requirements included in the plan of sanitation. If the managing director of sanitation is appointed until removal of determination about approval of the plan of sanitation, and is refused approval of the plan of sanitation, powers of the managing director stop at the time of removal of determination about refusal in approval of the plan of sanitation.

The economic court can limit operation of the moratorium in exceptional cases if such moratorium can entail loss of subject of pledge of the secured creditor.

8. The economic court considers the application for approval of the plan of sanitation no later than one month from the date of adoption of the corresponding statement to consideration.

The economic court shall hear each attendee at meeting of the creditor who has objection concerning the plan of sanitation even if such creditor voted for approval of the plan of sanitation.

In the absence of the bases for refusal in approval of the plan of sanitation the economic court takes out determination about approval of the plan of sanitation. This determination repeals the moratorium. Determination about approval of the plan of sanitation becomes effective from the moment of its removal.

The economic court takes out determination about refusal in approval of the plan of sanitation if:

in case of approval of the plan of sanitation violations of the law which could affect result of vote of general meeting of creditors were allowed;

the creditor who did not take part in vote or voted against approval of the plan of sanitation will prove that in case of liquidation of the debtor according to the procedure, determined by this Code, its requirements would be met in the amount of, exceeding the size of requirements which will be met in accordance with the terms of the plan of sanitation;

the debtor provided false information which is essential to determination of success of the plan of sanitation.

Removal of determination about refusal in approval of the plan of sanitation is not obstacle for repeated approval of such plan of sanitation by creditor meeting according to requirements of the legislation and the appeal of the debtor to economic court with the statement for approval of the plan of sanitation.

Determination of economic court about refusal in approval of the plan of sanitation repeals the moratorium and all other measures taken by court.

Concerning satisfaction of secure requirements of creditors at the expense of property of the debtor which is subject of providing, the moratorium it is terminated automatically after the expiration of 60 calendar days from the date of acceptance to consideration of the application about approval of the plan of sanitation if the economic court during this time does not consider the application for approval of the plan of sanitation.

9. The economic court discharges the managing director of sanitation of execution of the obligations by it according to the petition of the debtor, creditor or on own initiative in case:

non-execution or improper execution of the obligations assigned to the managing director of sanitation;

abuses of the rights of the managing director of sanitation;

representation to managing directors of sanitation in court of false data;

refusal in provision to the managing director of sanitation of the admission to the state secret or cancellations of earlier provided admission;

availability of conflict of interest at the managing director of sanitation.

The economic court discharges the managing director of sanitation of execution of the obligations by it according to the application submitted by the managing director of sanitation.

The economic court discharges the managing director of sanitation of execution of the obligations by it within five days from the date of when the court knew of availability of the bases for discharge about what takes out determination.

In case of discharge of the managing director of sanitation the economic court appoints other managing director of sanitation according to the procedure, established by part seven of this Article.

The economic court replaces the managing director of sanitation according to the petition of the creditors who are present at general meeting whose requirements in total constitute more than 50 percent of total amount of the requirements included in the plan of sanitation, according to the procedure, established by part seven of this Article.

10. The plan of sanitation approved by economic court is obligatory for all creditors whose requirements are included in the plan of sanitation.

Changes are made to the plan of sanitation according to the procedure, established for its approval.

The debtor and the creditor by the conclusion of the agreement can change the rights and obligations provided by the plan of sanitation, in particular, to provide delay or extension of the deadline for executing if such change does not give preference to the creditor in comparison with conditions of the plan of sanitation. The copy of such agreement goes to the managing director of sanitation, creditors who participate in sanitation, and to investors.

According to the statement of the debtor or creditor the economic court can stop the procedure of sanitation in case of violation of accomplishment of the plan of sanitation, in the presence of the bases to consider that such plan of sanitation will not be implemented.

Determination of economic court about the termination of the procedure of sanitation cancels the measures taken by court, and the plan of sanitation is considered terminated. In that case requirements of creditors are recovered in complete size in unsatisfied part.

11. By results of accomplishment of the plan of sanitation the debtor or the managing director of sanitation (in case of its appointment) submits the application for approval of the report on accomplishment of the plan of sanitation to which are enclosed to economic court:

report on accomplishment of the plan of sanitation;

proofs of the direction of the copy of the application and the report to creditors who participate in sanitation to investors and the debtor (if the application is submitted by the managing director of sanitation).

The economic court considers the application for approval of the report on accomplishment of the plan of sanitation within 10 days from the date of its receipt. Determination about purpose of judicial session for consideration of such statement goes to creditors who participate in sanitation, to investors, the debtor and the managing director of sanitation.

About approval of the report on accomplishment of the plan of sanitation or about refusal in approval of such report the economic court takes out determination. Determination of economic court about approval of the report on accomplishment of the plan of sanitation cancels all measures taken by court.

Article 6. The judicial processes applied concerning the debtor

1. According to this Code concerning the debtor - the legal entity the following judicial processes are applied:

order property of the debtor;

sanitation of the debtor;

liquidation of the bankrupt.

2. According to this Code concerning the debtor - physical person the following judicial processes are applied:

debt restructuring of the debtor;

repayment of debts of the debtor.

The procedure of repayment of debts of the debtor is entered in the case of insolvency together with recognition of the debtor by the bankrupt.

3. Procedures of sanitation of the debtor or liquidation of the bankrupt are performed with observance of requirements of the legislation on protection of the economic competition.

4. When implementing judicial processes concerning the debtor for the purpose of reduction of terms of proceeedings about bankruptcy (insolvency) the economic court is guided by the principle of procedural economy.

Article 7. Procedure for consideration of disputes in which party is the debtor

1. Disputes in which party is the debtor are considered by economic court by the rules provided by the Economic Procedure Code of Ukraine taking into account the features determined by this Article.

2. The economic court in which production there is case on bankruptcy (insolvency) within this case solves all receivership proceeding in which party is the debtor; disputes with claims to the debtor and concerning its property; disputes on recognition invalid results of auction; disputes on recognition invalid any bargains concluded by the debtor; disputes on return (reclamation) of property of the debtor or compensation of its cost respectively; disputes on indemnification and/or the losses caused to the debtor; disputes on collection of the salary; disputes on recovery at work official and officials of the debtor; disputes on other requirements to the debtor.

The list of participants of consideration of dispute is determined according to the Economic Procedure Code of Ukraine.

The economic court considers disputes in which party is the debtor, by the rules determined by the Economic Procedure Code of Ukraine. By results of consideration of dispute the court makes the decision.

Statements (actions for declaration) of participants of proceeedings for bankruptcy (insolvency) or other persons in disputes in which party is the debtor are considered within matters on bankruptcy (insolvency) by rules of the expedited claim production.

The claimant has the right in the action for declaration to declare the motivated petition for consideration of the case on rules of general claim production. If the court by results of consideration of the petition of the claimant comes to conclusion about consideration of the case according to the procedure of general claim production, he notes about it in the resolution on opening of proceeedings.

If defendant in such dispute is the subject of powers of authority, the court is guided by the principle of official clarification of all circumstances on case and takes the measures necessary for clarification of all circumstances for case determined by the law, including concerning identification and reclamation of proofs on own initiative.

3. Case papers in which the party is the debtor concerning the disputes specified in part two of this Article in which production is open to or after opening of proceeedings about bankruptcy (insolvency), at the initiative of the participant of case or court instantly, but no later than five working days go to Economic court in which production there is case on bankruptcy (insolvency) which considers dispute over being within this case.

4. If the economic court, considering within case on bankruptcy (insolvency) dispute on collection from the debtor of money, will determine that the claimant in such dispute submits on the case of bankruptcy (insolvency) of the debtor the statement with monetary claims to the debtor, the economic court leaves such claim without consideration.

Article 8. Jurisdiction, cognizance, the bases for opening of proceeedings about bankruptcy (insolvency)

1. Cases on bankruptcy (insolvency) are considered by economic courts on the location of the debtor - the legal entity to the residence, physical person or the physical person - the entrepreneur. Change by the debtor of the registered location or the residence after giving by the creditor or debtor of the statement for opening of proceeedings for bankruptcy (insolvency) does not influence change of territorial cognizance of economic court

2. With the statement for opening of proceeedings for bankruptcy the debtor, the creditor have the right to the appeal to economic court.

With the statement for opening of proceeedings for insolvency the debtor has the right to the appeal to Economic court.

In case of insolvency of the insurer or credit union the right to the appeal to Economic court with the statement for opening of proceeedings for bankruptcy is had the National Bank of Ukraine, the debtor (if the National Bank of Ukraine provided to such debtor permission to voluntary exit from the market), the liquidator of the debtor or is appointed by the National Bank of Ukraine according to the law the temporary administrator of the insurer or credit union if the decision of the National Bank of Ukraine on appointment of the temporary administrator provides the right of the temporary administrator to file such petition.

3. Proceeedings about bankruptcy (insolvency) open economic court according to the statement of the debtor also in case of threat of its insolvency.

4. If case is not cognizable to such economic court, case papers are transferred by economic court on the established cognizance according to the procedure, determined by the Economic Procedure Code of Ukraine.

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