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LAW OF UKRAINE

of June 14, 2016 No. 1414-VIII

About financial restructuring

(as amended on 19-09-2019)

This Law determines conditions and procedure for holding procedure of voluntary financial restructuring of the debtor using the measures provided by this Law.

Article 1. Determinations of terms

1. For the purposes of this Law terms are used in such value:

1) the arbitrator - the physical person which performs the professional activity connected with provision of public services and is appointed by arbitration committee for resolution of disputes, arising during procedure of financial restructuring;

2) the arbitral agreement - the agreement of the parties on transfer of the disputes arising during procedure of financial restructuring in arbitration according to arbitral regulations;

3) arbitral regulations - the document which determines procedure and dispute resolution rules, arising during procedure of financial restructuring, the procedure of carrying out arbitration, procedure for forming of the list of arbitrators, qualification requirements to arbitrators, regulations on the arbitration fees and expenses, other questions connected with the dispute resolution during procedure of financial restructuring;

4) bank with participation of the state - bank which share of state-owned property in the authorized capital constitutes less than 100 percent;

5) the debtor - the legal entity - the subject of business activity who has debt at least to one financial institution which is not the face tied with the debtor and initiates holding procedure of financial restructuring according to this Law, including the municipal and state companies, except financial institutions and the state companies;

6) monetary commitment - obligations 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) belong to monetary commitments, except insurance premiums for obligatory national pension and other social insurance, the obligations arising owing to impossibility of performance of agreement obligations of delivery, storage, the contract, hiring (lease), rent, etc. and shall be expressed in monetary units.

Monetary commitment of the debtor the penalty (penalty, penalty fee) and other property or financial sanctions are included. Monetary commitment of the debtor obligations to founders (participants) of the debtor - the legal entity, arisen from such participation, wages payable of workers of the debtor are not included.

The structure and the size of monetary commitment are determined on the date of giving by the debtor in the secretariat of the written application about restructuring;

7) the state company - the company acting on the basis of state-owned property or the company in which authorized capital the share of state-owned property constitutes 50 and more percent;

8) national bank - bank which 100 percent of the authorized capital belong to the state;

9) the agreement on delay - the contract between the debtor, the attracted creditors and guarantors (in the presence) about the period and conditions of abstention of creditors from implementation of actions for debt collection from the debtor and/or guarantors and the address of collection regarding pledge (mortgage) in judicial or extrajudicial procedure;

10) the secured creditor - the creditor whose requirements are provided with pledge (including mortgage);

11) the attracted creditor - the creditor determined by the debtor whose requirements can be restructured according to the procedures provided by this Law and who signed consent to restructuring and also body of collection (in case of determination by his debtor by the attracted creditor in the statement for restructuring) which participates in the procedure of financial restructuring according to the procedure, determined by this Law;

12) consent to restructuring - the written agreement between the debtor and the attracted creditor which is the basis for holding procedure of financial restructuring also contains the arbitral agreement;

13) the investor - the physical person and/or the legal entity wishing to participate in procedure of financial restructuring of the debtor;

14) the municipal company - the company acting on the basis of municipal property of territorial community or the company in which authorized capital the share of municipal property of territorial community constitutes 50 and more percent;

15) the creditor - physical person, physical person entrepreneur, the legal entity, bodies of collection which have documentary confirmed requirements to the debtor concerning its monetary commitments;

16) critical financial condition - situation when the debtor acknowledged inability timely to fulfill the monetary commitments before creditors;

17) the moratorium - suspension of execution by the debtor of the requirements involved creditors and the connected persons of the debtor and suspension of implementation of actions for accomplishment of these requirements, including suspension of current of term of submission of demand to guarantors;

18) the independent expert - the physical person, physical person entrepreneur or the legal entity who is not connected with the debtor and/or with the creditor conforms to the requirements established by the supervisory board, chosen creditor meeting and carries out the overview of financial and economic activities of the debtor and prepares the report on carrying out the overview of financial and economic activities of the debtor;

19) bodies of collection - the central executive body realizing the state tax policy, state policy in the sphere of the public customs affairs, state policy in the sphere of fight against offenses in case of application of the tax, customs legislation and their territorial authorities, authorized to perform actions for ensuring repayment of tax debt within powers, the central executive body realizing state policy in the sphere of treasurer servicing of budgetary funds, financial accounting of accomplishment of budgets, executive body which provides realization of state policy in the sphere of the organization of forced execution of decisions of the courts and other bodies (officials);

20) the restructuring plan - the agreement according to which restructuring of monetary commitment and/or economic activity of the debtor in the procedure of financial restructuring is carried out, concluded according to the procedure, determined by this Law, between the debtor, the attracted creditors and investors (in the presence), and also other persons to whom obligations according to the restructuring plan are assigned;

21) the notification on dispute - the document based on which holding procedure of consideration of dispute in arbitration begins;

22) the connected person - person who has general with the debtor final (final) beneficial (beneficial) owner (owners), the controller (controllers); the person in whom the debtor owns essential participation; person who owns essential participation in the debtor; person who along with the debtor has general (general) the owner (owners) of essential participation; or person who belongs to physical person or is controlled by physical person is in the related relations (is husband (wife), the direct relative (the father, mother, the child, the brother, the sister, the grandfather, the grandma, the grandson, the granddaughter), the direct relative of the husband (wife), the wife (husband) of direct relatives) with the final beneficial owner (controller) of the debtor or the owner (owners) of essential participation in the debtor; person who is guarantor (the property guarantor) according to obligations of such debtor. National banks, banks with participation of the state, other state companies or public authorities for the purposes of this Law are not considered as the connected faces concerning debtors who are the state companies;

23) the procedure of financial restructuring - the complex of actions for restructuring of monetary commitment and/or economic activity of the debtor performed on the conditions and according to the procedure established by this Law;

24) the framework agreement of financial restructuring (further - the framework agreement) - the contract between the financial organizations on coordination of their actions in the procedure of financial restructuring of the debtor;

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