Arbitration manager services

 The cost of arbitration manager services depends on:

• difficulties of conducting the bankruptcy procedure;

• list and type of services;

• availability and types of property of the debtor,

• availability of collateral, arrests, prohibitions on the alienation of property, payables and receivables

• and is determined individually in each case.

 

The court usually requires the submission of a petition for the appointment of a professional arbitration manager to the position of administrator of the property. The creditor has the right to propose his candidacy of the arbitration administrator for the appointment of the rehabilitation administrator, liquidator in the debtor's bankruptcy procedures.

According to the Law of Ukraine "On restoring the solvency of the debtor or declaring him bankrupt" in the new version of 18.01.2013  significant changes were made regarding the status of the arbitration administrator and his participation in the bankruptcy procedure. Licensing of this activity has been cancelled. Arbitration manager – this is a natural person appointed by the commercial court from among the persons who received the relevant certificate (by analogy with the attorney's certificate) and entered into the Unified Register of Arbitration Administrators of Ukraine. The arbitration administrator is no longer a subject of entrepreneurial activity, he has been assigned the status of a subject of independent professional activity.

Following the example of the countries of Western Europe, the selection of the arbitration manager now takes place automatically from the Unified Register and is approved by a court decision already post factum, in order to avoid the involvement of interested parties in the bankruptcy procedure, which is unacceptable.

The state bankruptcy authority does not have the right to intervene in the bankruptcy procedure itself, but there are certain exceptions regarding enterprises that have public or other significance, are city-founding or particularly dangerous objects, such as, for example, mines or solid property agricultural complexes (the procedure can be terminated by the decision of the local self-government body, provided that they are provided with guarantees of meeting the demands of creditors). For state-owned enterprises and those with a share of state ownership in the authorized capital of more than 50%, arbitration administrators are appointed by the commercial court, taking into account additional requirements established by the Cabinet of Ministers. Also, such an arbitration administrator can be removed from the performance of his duties not only by a court or a creditors' committee, but also by a state property management authority, which is necessarily involved in such a case and participates in the creditors' committee with the right of an advisory vote.< /p>

Bankruptcy procedures under which the services of an arbitration trustee are provided:

• procedure for rehabilitation of the debtor prior to initiation of a bankruptcy case;

• bankruptcy by violation of the general bankruptcy procedure;

• bankruptcy of the debtor, which is liquidated by the owner;

• bankruptcy of an individual - an entrepreneur.

 

Services of the arbitration manager (property manager, rehabilitation manager, liquidator) are provided both in the complex and in individual stages of the bankruptcy procedure, namely:

• conducting consultations on preparation for the procedure and the bankruptcy procedure itself;

• formation of a package of documents necessary for the initiation of the bankruptcy procedure;

• preparation and submission of an application for initiation of a bankruptcy case to the commercial court;

• participation in court sessions;

• submitting an announcement to the mass media about the opening of the bankruptcy procedure;

• compilation of the register of creditors;

• participation in holding or conducting meetings of creditors;

• conducting an audit of the debtor;

• conducting the debtor's liquidation procedure;

• taking measures to find the property, property rights and assets of the debtor;

• opening a liquidation account, closing the debtor's accounts in banks and other financial institutions;

• conducting property inventory;

• property assessment;

• sale of property through the procedure of public auctions;

• drawing up a liquidation balance sheet;

• writing the liquidator's report;

• destruction of the seal and transfer of founding and financial and economic documents to the archival institution;

• obtaining an extract from the Unified State Register of Legal Entities and Individual Entrepreneurs with a record of the state of the legal entity.

 

Regulations "On the system of training arbitration managers" determines a number of measures and requirements that must be passed to obtain this status: mandatory training, work experience (1-3 years) after receiving a special (legal or economic) higher education, internship for six months, passing a qualifying exam and obtaining a certificate and seals, professional development once every 2 years. Also, the special Commission of the Ministry of Justice assigns the first level of qualification to the arbitration administrator at the same time as issuing him a certificate and entering it into the Register, and later, in order to receive an increase in the qualification level (from the second to the fifth), he must add documents to the application to confirm compliance with certain criteria regarding seniority and experience. Thus, only the highest (fifth) level arbitration managers are appointed to carry out the bankruptcy procedure of state-owned enterprises and enterprises equal to them in terms of importance.

Our arbitration manager has extensive experience in conducting bankruptcy procedures for debtors, both in general and with particularities.

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