The bill submitted to the State Duma on May 17 on changing the procedure for bankruptcy of legal entities is only part of the reform of bankruptcy legislation in Russia. It should be fully completed in three years – this is the term named by Deputy Minister of Economic Development Ilya Torosov at the session “Bankruptcy: Restart” of the St. Petersburg International Legal Forum.
The number of corporate bankruptcies has been declining recently, and not only because of the coronavirus moratorium. According to Fedresurs, at the end of 2020, the number of decisions on declaring companies bankrupt decreased by almost 20%, and in the first quarter of 2021, when the moratorium was no longer in force, by 8% compared to the same period last year. At the same time, experts do not exclude an increase in cases already this year, and also note the extremely low efficiency of bankruptcies in Russia, especially in terms of recovery. In 2020, there were only 31 cases of restoration of the debtor’s solvency with more than 100,000 cases considered.
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