Bankruptcy is not an end — it is a redistribution of rights and assets. Ukraine’s Bankruptcy Procedures Code (effective 21.10.2019) radically changed the approach: the procedure focuses on rehabilitation rather than liquidation. Whoever enters the proceeding first sets the rules: builds the creditor register, selects the trustee, drafts the restructuring plan.
Litigant represents both creditors and debtors — on separate cases, with strict conflict-of-interest separation. Iurii Grygorenko is a certified insolvency trustee and Secretary of the NAAU Bankruptcy Committee. We see the procedure from both sides and know the risks for every participant. Defense of a creditor in case A is handled by a different team specialist than the one supporting a debtor in case B.
Scope of services in bankruptcy proceedings
Filing a bankruptcy petition
Drafting creditor or debtor petitions, building the insolvency evidence base, court support at the proceeding-opening stage.
Insolvency trustee work
Performance of property administrator, rehabilitation manager and liquidator duties. Inventory, creditor register, electronic-auction asset sales.
Debt restructuring
Rehabilitation plan, negotiations with key creditors, settlement-agreement coordination. Preserving the operational business instead of liquidation.
Creditor defense
Inclusion of claims in the register, appeals against trustee actions, control of debtor-asset sales, challenge of fraudulent transactions.
Subsidiary liability
Bringing managers, founders, beneficiaries to subsidiary liability for the debts of a bankrupt company — or defending the director against such a claim.
When clients turn to Litigant
Scenarios that require a Bankruptcy Code specialist. Reaction time here is measured in weeks, but the cost of delay is asset loss.
- 01The company cannot service debts to banks, suppliers or employees
- 02Creditors filed a bankruptcy petition — debtor defense strategy is needed
- 03A certified insolvency trustee is required for the procedure
- 04Asset protection from creditor enforcement through bankruptcy
- 05Threat of subsidiary liability against the director
Frequently asked questions about bankruptcy
Basic questions faced by directors, beneficiaries and creditors before deciding to enter the procedure.
When can a company file for bankruptcy?
A debtor is required to file with the court for the opening of proceedings in cases provided by Art. 34 of the Bankruptcy Procedures Code: cessation of monetary obligations for over 3 months on amounts exceeding 300 minimum-wage units, discovery of insufficient property to fulfill obligations, or where continued activity will lead to bankruptcy. The debtor may also file voluntarily — often strategically more beneficial than waiting for a creditor’s petition, as it allows initiating rehabilitation and retaining procedure control through an agreed trustee.
What is an insolvency trustee and what is the role?
An insolvency trustee is a legal entity or individual entrepreneur with higher legal or economic education, having passed the qualification exam and holding a Ministry of Justice certificate. In bankruptcy, the trustee sequentially performs three roles: property administrator (observation stage), rehabilitation manager (reorganization), and liquidator. Powers include inventory, creditor register, asset sales via electronic auctions on Prozorro.Sale, challenging suspicious transactions. Iurii Grygorenko has been a trustee since 2017 and has performed all three roles in commercial courts of Kyiv, Odesa and Lviv.
Does a director bear personal liability when the company goes bankrupt?
Yes, in two scenarios. First — subsidiary liability under Art. 61 of the Bankruptcy Code: managers and founders are liable with personal property for the debtor’s obligations if their actions or inaction led to bankruptcy. Second — criminal liability: Art. 219 CC (bringing to bankruptcy), Art. 388 CC (illegal actions in bankruptcy). Defense includes analyzing management decisions for the 3 years preceding bankruptcy, proving absence of causal link between the manager’s actions and insolvency, building evidence of good-faith conduct. Litigant supports directors in subsidiary claims and criminal proceedings simultaneously.
How to protect creditor assets in debtor bankruptcy?
A creditor must act on three fronts. First — timely inclusion of claims in the register: 30 days from the official notification of proceedings opening (Art. 47 BPC). Delay means inclusion at a later stage with lower satisfaction priority. Second — control of trustee actions: participation in the creditors’ committee, appeals against unfavorable trustee decisions or reports. Third — challenging fraudulent debtor transactions made within 3 years before proceedings opening: sales at understated prices, gifts to related parties, baseless offsets. Litigant supports large creditors from claim filing to satisfaction from the liquidation estate.
What is restructuring and when is it preferable to bankruptcy?
Restructuring is a rehabilitation procedure within bankruptcy proceedings aimed at restoring debtor solvency without liquidation. The rehabilitation plan is approved by the creditors’ meeting and includes debt restructuring, sale of non-core assets, attraction of new capital, payment deferrals. Restructuring is beneficial when the business is viable (generates operating cash flow but carries an unsustainable debt burden), when assets are worth more as a going concern than sold piecemeal, and when creditors are open to compromise. Litigant runs rehabilitation cases of 6 months to 2 years, focused on preserving jobs and operational client control.
Bankruptcy is not a verdict — it is a process with its own rules
Describe the situation — creditor or debtor side. We’ll assess the entry strategy, subsidiary-liability risks and restructuring potential within 2 business hours.
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