THE MORATORIUM ON BANKRUPTCY WILL BE IN EFFECT UNTIL JANUARY 7, 2021

The day before, the Government of the Russian Federation extended the moratorium on bankruptcy introduced in April.

The measure involves a ban on filing insolvency petitions in relation to the companies and individual entrepreneurs who are on the list of organizations especially affected by the pandemic.

This time, strategic and systemically important companies did not fall under its effect.

Same as before, in case of signs of insolvency, companies and entrepreneurs, protected by the moratorium, can file petitions against themselves, but the petitions of creditors will be returned with reference to the moratorium.

In addition, the moratorium also includes a ban on the distribution of dividends, redemption of shares and enforced seizure of the pledged property.

What is more, according to the norm on the moratorium, if a company or individual entrepreneur that fell under its effect is recognized insolvent within three months from the moment of termination of the moratorium against them, then transactions related to their assumption of obligations or the transfer of property may be declared invalid.

It is worth noting that companies and individual entrepreneurs have a right to refuse from the governmental assistance in the form of bankruptcy protection – it is necessary to publicly declare this on the Fedresurs website.  

According to the Government of the Russian Federation, 700 companies and 130 individual entrepreneurs took advantage of this opportunity during the six months of the operation of moratorium.