A moratorium on bankruptcy might be cancelled for the number of companies

The bankruptcy moratorium regime, introduced by the Government of the Russian Federation, has been criticized by the legal community. The problem has been heard by the State Duma and now the deputy from the Communist Party, Sergei Gavrilov, proposes to reconsider the list of the companies that fell under the moratorium.

In short, the moratorium conditions are not optimal for all the enterprises from the government’s list:

• on the one hand, the applications for bankruptcy of companies cannot be filed and considered by the court, which means that there is a kind of immunity in an unstable financial period;

• on the other hand, the same companies cannot distribute the profits, pay dividends, and make large transactions.

Such measures are undoubtedly important, but only for the enterprises that are in real danger of financial collapse.

If we talk about large corporations, such as Gazprom, Rosneft, or a number of banks with state participation, we can say that they do not need any immunity from bankruptcy, but the restrictions, according to the deputy, only interfere with their business activities.

Thus, at the moment, it is proposed to remove a number of the companies that are firmly on their feet and are unlikely to wobble during the crisis from the list. Read more about the "error" in the moratorium here.