In the context of global financial and economic crisis it is important to provide organizational and legal support of to undertakings faced with difficult financial situation.

One of the technologies of helping such companies is the application of bankruptcy proceeding, providing the companies with the possibility to obtain delay in performance of their obligations. It includes, in particular, the possibility of introduction of bankruptcy proceeding upon application of the Company’s manager.

Effective legal instrument in this case for providing the possibility to stabilize their financial status according to the Law of Ukraine On Renewal of Solvency of the Debtor or declaring it Bankrupt, is MORATORIUM ON CLAIMS OF CREDITORS SETTLEMENT. The application of this legal instrument allows termination of payments of all kinds by the debtor, including those concerning tax and fees payments, with terms of fulfillment took place before the date of moratorium introduction, and withhold the actions aimed at ensuring performance of abovementioned obligations.

Moratorium shall be set simultaneously with the opening of bankruptcy proceeding by economic court and is effective during the whole bankruptcy procedure (from three to four years). During the specified period and to the moment of application of rebuilding procedures the Debtor shall not pay any of his accumulated debts. Besides no executive or fiscal authority shall have right to apply enforcement procedure for the purpose of repayment these debts.

The most important stage of bankruptcy proceeding allowing the companies to carry out their activity and stabilize their financial status during the bankruptcy proceeding, is the REHABILITATION OF THE DEBTOR.

In the process of rehabilitation proceeding the following matters can be used: restructuring of the company, redesigning of production process, closure of unprofitable factories, alienation of fixed assets, lease of property, delays in payment or payments in installment, debts amortization, roll-over of short-term credits into long-term credits, reduction of number of employees, etc.

As a result of complex application of legal mechanisms, specified in the abovementioned Law, the basic aim is reached – overcoming of financial crisis by the company, that is the task of central importance in complex situation in economics of Ukraine and of the whole world.