What is an insolvency administrator appointed for?
The liquidator is a person who has a license to own or liquidate and redevelop the property. Such licenses are awarded by the Ministry of Justice of Ukraine. An insolvency administrator is appointed by the Commercial Court for the performance of certain required procedures in insolvency proceedings. The services of a liquidator (liquidator, possessor, and reorganizer) may be performed during certain insolvency proceedings or in liquidation projects without an institution review.
The insolvency administrator plays a key role in insolvency proceedings, as his participation is mandatory under current legislation (Law of Ukraine “On payment recovery of a debtor or recognition of its bankruptcy”).
By law, the insolvency administrator participates in all stages of the insolvency process, from the owner of the estate to the liquidator. Accordingly, a bankruptcy trustee can be considered an indispensable part of today’s insolvency procedure.
Who should be used as a liquidator?
The business court traditionally requires the initiating lender to use a professional insolvency administrator (necessarily with the appropriate license) as the property manager in the preliminary negotiations.
The lenders who have the most votes in the lender’s committee have the right to nominate their candidate for bankruptcy liquidator, who directs the recovery.
Among the staff of the law office “Bidniahin and Partners” there are liquidators who are highly qualified and who have correspondingly high level of experience and knowledge in the field of liquidation and insolvency proceedings. Our clients find a professional team that is constantly evolving and pursuing new trends in liquidation and insolvency. So we help you to find a suitable answer even for the most complicated questions of insolvency.
What services can a professional insolvency administrator offer?
- Advice on liquidation and insolvency issues;
- Preparation of the documents necessary to initiate the bankruptcy;
- Petition to the Commercial Court (this is the only way to open the procedure);
- Active participation in court sessions;
- Advertising of insolvency proceedings in media;
- Formation of the Special Lender Committee;
- Execution of meetings of the lender committee;
- Constitution of the list of lenders;
- carrying out the audit of the debtor (the debtor);
- carrying out the liquidation proceedings of the debtor (the debtor);
- Measures in the search for assets and possessions of the debtor;
- Closure of accounts in financial institutions (including banks);
- carrying out the inventory;
- Property assessment;
- Public auction of the property;
- balancing (liquidation);
- Constitution of the liquidation report;
- Exclusion of the debtor from the state business register;
- Transfer of the financial books and statutory documents into assets and destruction of the stamp.
What do the services of the liquidator cost?
Services of the liquidator are paid each month of his activity. In doing so, they are paid in the amount determined by the Lender Committee and the Economic Court. Everything mentioned above is only true, unless otherwise provided in the legislation. The amount paid may not be less than two minimum wages. In addition, the amount may not exceed the average salary of the head of the debtor calculated after the last twelve months of the head of the bank’s conduct before the insolvency proceedings.
How would you pay the bankruptcy trustee if the company is bankrupt?
By law, the expenses are compensated or services paid by the liquidator after the execution of his direct obligations in the order that is determined by this law (as a reminder, it is about the law on the restoration of solvency …) at the expense that will be obtained by:
- Costs of the lenders;
- Auction of the debtor’s possessions;
- Material assets received during the economic activity of the debtor.
Under current legislation, different variants of insolvency proceedings are possible. The experts of the law firm “Kulakov, Bidniahin and Partners” can offer you the cheapest, most convenient options by relying on your legal situation and certainly with individual approach.
Your choice of law firm would be without a doubt the right solution so that you receive the highly qualified services of an experienced and expert bankruptcy trustee.