Legal Matters team took part in a conference “Bankruptcy practice” held by the “Vedomosti” business media.

Alena Kosina, head of practice and Ivan Balyan, legal assistant at Legal Matters, took part in an IX annual conference “Bankruptcy practice” that took place at Ararat Park Hyatt Moscow on October 13, 2023.

The institution of bankruptcy in Russia has been undergoing significant changes over the past few years – rapid changes to the legislation stimulated emergence of the new approaches in law enforcement. During the conference, the panel members discussed existing trends and challenges with respect to bankruptcy practice in Russia, as well as proposals to revise current bankruptcy law.

The conference was attended by the representatives of state authorities, lawyers who litigate criminal and civil cases, business owners and managers, bankruptcy trustees, non-profit organizations, experts and analysts, as well as business and sectoral media.

The main topic of the conference were current law enforcement challenges in bankruptcy cases, as well as the proposed ways to deal with them. The panel members noted that the key problems of bankruptcy institute in Russia are the prevalence of liquidation procedure over financial rehabilitation and the misuse of subsidiary liability institute as a mechanism of bringing controlling entities to responsibility.

As a solution, the panel members proposed to amend the bankruptcy legislation in order to move to a more flexible approach, which suggests rehabilitation rather than liquidation of a business. In particular, it was proposed to examine the "cramdown" institution, which is common to American and some of the European jurisdictions.

The bankruptcy practice in Russia is constantly developing, both in terms of legislation and law enforcement practice. Accordingly, participation in such events allows to stay aware of the main tendencies in bankruptcy law, current challenges and legal community’s standpoint on how deal with them.