President of Ukraine Volodymyr Zelensky has proposed to the Verkhovna Rada that it lifts the ban on opening proceedings in bankruptcy cases of debtors-legal entities under applications of creditors, introduced for the quarantine period and 90 days after its cancellation.

Bill No. 4220 on amending some legislative acts regarding the settlement of certain bankruptcy procedures for the period of measures to prevent the spread of coronavirus COVID-19 disease was registered in the Verkhovna Rada on October 15 and published on Wednesday.

In addition, it is proposed to abolish the rule that the creditors' committee and the secured creditor during the quarantine period may suspend the auctions for the sale of the debtor's property.

"Given that measures to prevent the spread of acute respiratory disease COVID-19 are being extended, there is a need for additional compensatory mechanisms to ensure production in bankruptcy cases," the president said in the explanatory note to the bill.

In particular, the amendments normalize the procedure for holding a meeting of creditors or the committee of creditors by video conference, as well as by means of a survey, the procedure for confirming the identity and powers of a participant in a meeting of creditors or the committee of creditors, and formalizing the results of the meeting.

Also, the bill, in particular, clarifies the issue of the responsibility of the insolvency of the judicial administrator for failure to perform the actions provided for by the Bankruptcy Procedure Code due to quarantine requirements, and determines the grounds for extending the time frame for the preliminary court hearing in the bankruptcy case.

It is also proposed that the Cabinet of Ministers is relieved from the obligation to include information on the implementation of this law in the report on the progress and results of the implementation of the Government's Action Plan for 2020.