Financial recovery as a means of restoring solvency of bankrupt debtor: special provisions in Russian civil law

Financial University under the Government of the Russian Federation, Moscow, Russia

¹ Corresponding author: mrzagajnov@fa.ru

Abstract

The relevance of this study is due to the uncertainty and high degree of turbulence of economic processes in the country and, therefore, the growing number of insolvent business entities. At the same time, in the case of bankruptcy procedures applied to debtors, one of the most optimal for both the debtor and his creditors is the procedure of financial rehabilitation, the purpose of which is to restore the solvency and effective economic activity of the debtor. The key figure in the financial recovery procedure is the administrative manager, whose purposeful implementation of recovery measures in relation to the debtor’s property and debts will allow the latter to continue carrying out business activities in full and with profit, as well as with the payment of mandatory payments to the state budget – taxes, fees, excise duties. However, this procedure is the least popular among administrative managers and creditors of the debtor, since it is the only provision in the Law “On Insolvency (Bankruptcy)” that provides for the preservation of the authority for the debtor’s management bodies and their relative independence from the administrative managers and creditors when making decisions on material issues of debtor’s activities. The authors consider it necessary to increase the applicability of financial rehabilitation in relation to other bankruptcy procedures.