Cannot liquidate, must preserve: insolvency issues of organizations discussed in Vitebsk
This was announced by the Deputy Chairman of the Regional Executive Committee, Anzhelika Nikitina, during a round table on the application of the provisions of the Law "On Insolvency Resolution". She emphasized that positive trends in preventing bankruptcy and liquidation of organizations have emerged precisely due to the action of this legislative act.
– The main goals of the said law are to preserve business, stabilize the financial and economic condition of enterprises, and preserve labor collectives, but not liquidation and bankruptcy, – emphasized Anzhelika Nikitina. – Commissions for insolvency resolution operate under district executive committees and the regional executive committee, and their powers have been expanded regarding work with enterprises of private ownership, regardless of their staff size.
Commissions provide consulting and other assistance to enterprises of both state and private ownership. Moreover, as practice shows, the latter apply for it more often. Various mechanisms are used for the rehabilitation of enterprises: settlement agreements concluded with the help of the regional economic court, debt restructuring, and contributions to authorized capital. Financial recovery measures are also applied at the enterprise level, for example, intrastructural debt, which affects the improvement of socio-economic development indicators and revenue growth.
– Such a mechanism as enterprise reorganization by transferring its shares to a more successful enterprise is actively used, – noted Anzhelika Nikitina. – Thus, this year the shares of OJSC "Znamya Industrializatsii" were transferred to RUPTP "Orshansky Lnokombinat", as a result of which the debt was restructured, and the enterprise is increasing its production volumes.
The northern region's practices in insolvency settlement, including judicial ones, are of interest to the entire republic. Vitebsk was not chosen as the venue for the round table by chance: in the region, the insolvency (bankruptcy) procedure is used by active debtors; state bodies, including local administration and self-government, take an active position in terms of using insolvency settlement mechanisms for budget debt recovery. In addition, the regional economic court has considered many cases based on which certain conclusions can be drawn, and the time has come to generalize judicial practice.
“It is important for us that the law under discussion is well-developed in terms of legal technique and style of presentation,” noted Deputy Chairman of the Supreme Court Yuri Kobets. “It is no less important that it works in practice, and that it is understood by all interested parties in the correct resolution of cases of this category. For this, it is important for us to hear from the local level what issues arise for government bodies, enterprises, and legal entities.”
Representatives of government bodies, universities, judges, and crisis managers were invited to participate in the round table. Based on the results of the event, materials will be prepared for consideration at the Plenum of the Supreme Court. Its thematic meeting will take place at the end of the year and will result in clarifications on all controversial issues regarding the application of the Law "On Insolvency Settlement".
Yuri Kobets also held a personal reception of citizens in Vitebsk and met with the staff of Vitebskiye Kovry OJSC.