On 30 March 2017, the Supervisory Board, which coordinates the financial restructuring procedure, unveiled the list of sole arbitrators approved by preferential voting of the Arbitration Committee.
Redcliffe’s partners Olexiy Soshenko, Head of the Banking and Finance practice, and Sergiy Gryshko, Head of the Dispute Resolution practice, were elected to settle disputes arising in financial restructuring procedures. Whist Olexiy Soshenko will be called to participate in disputes arising from general arbitral procedure and approval of restructuring plan, Sergiy Gryshko will act as an arbitrator under general procedure.
The Supervisory Board, the Secretariat and the Arbitration Committee were established in compliance with the requirements of the new Law "On Financial Restructuring". The Secretariat will be responsible for processing individual restructuring cases, and the Arbitration Committee will manage any disputes between parties through the appointment of an independent and qualified arbitrator selected from an officially approved list.
Under the new financial restructuring framework, introduced with the help of the EBRD and the World Bank, lenders and borrowers will be able to rely on voluntary out-of-court debt restructuring to restructure their loan agreements. The law aims to support the return of distressed Ukrainian companies to viability through mechanisms such as loan rescheduling, partial debt forgiveness and the conversion of debt to equity. The law provides a limited standstill on lender action and protection to borrowers from the initiation of new bankruptcy proceedings while restructuring negotiations are ongoing.