Lifebuoy or Standard

The first calls for restructuring were made at the end of December 2008, when the economy faced devaluation of the hryvnya. The multi-million loans taken in previous years cannot be returned in a timely manner. Hence, in the past year we have seen loud restructuring in both public and private sectors.

In the course of monitoring market deals and developments, restructuring processes are clearly determined as a prominent comprehensive issue for the needs of modern business. It seems at present that debt restructuring appears to have become a lifebuoy for numerous banks and industrial players.

General corporate restructuring is following adjustment to crisis terms. First and foremost, this is the result of the new Joint Stock Companies Act of Ukraine, which established requirements for joint stock companies and gave them a “transition period” in which to comply. Many business owners are considering different options for corporate restructuring with the aim of selling assets or attracting private investments.

Indeed, this topical issue has sounded the most during the year. Nevertheless, restructuring, the right to seek compliance with international standards of transparency, is usually a primary step for doing business abroad, acting on international capital markets and internationalization of business. And thus this is probably the first but not last issue of the UJBL devoted to restructuring.

Happy reading,
Olga Usenko