Ukraine's insolvency legislation has undergone significant revision. The amendments – effective from early 2025 – alter the procedural rights of creditors at every stage of insolvency proceedings. International companies holding claims against Ukrainian debtors, or managing subsidiaries under financial stress, face new obligations they may not yet have identified.
Ukraine's amended insolvency legislation restructures the hierarchy of creditor participation, modifies proof of debt procedures, and tightens the timelines within which creditors must file claims and engage with the administrator (the court-appointed insolvency practitioner). Creditors who fail to submit a complete proof of debt within the statutory window risk losing their place in the priority ranking entirely. The amendments apply to all insolvency proceedings opened on or after the effective date, and also affect pending proceedings where the restructuring plan has not yet been confirmed.
This alert explains what has changed, which business categories are directly affected, the compliance deadline that matters most, and five immediate actions international companies should take now.
What changed – the core amendments and their effective date
Ukraine's revised insolvency law – in force from 1 January 2025 – introduces several changes with direct consequences for creditors.
Proof of debt requirements tightened. The amended legislation requires creditors to submit a proof of debt accompanied by a wider set of supporting documents than was previously standard. Translated copies of foreign-law agreements, certified statements of account, and evidence of the creditor's legal standing are now mandatory at the initial filing stage. Previously, some of these documents could be supplied later in the process. Submitting an incomplete proof of debt now results in the claim being set aside until the defect is cured – and the cure window is short.
Creditors' meeting rules revised. The zbory kredytoriv (creditors' meeting) now operates under revised quorum and voting thresholds. A qualified majority is required to approve or reject a restructuring plan. Minority creditors – including foreign trade creditors holding smaller claims – face a reduced ability to block restructuring terms that may be unfavourable to them.
Liquidator oversight strengthened. The role of the likvidator (liquidator) has been expanded. The liquidator now holds broader powers to challenge pre-insolvency transactions entered into within an extended look-back period. Transfers of assets or security arrangements made in the period before insolvency proceedings were opened are at increased risk of being set aside.
Restructuring plan confirmation accelerated. Courts are directed to confirm or reject a restructuring plan within a compressed timeframe. This reduces the window in which creditors can negotiate amendments to a proposed plan.
Who is affected – threshold criteria and business categories
The amendments affect a broad range of international parties with exposure to Ukrainian debtors or Ukrainian-registered entities.
Foreign trade creditors holding invoiced claims against Ukrainian companies are directly affected. The tighter proof of debt rules apply regardless of where the creditor is domiciled. A supplier based in the EU or elsewhere must comply with Ukrainian procedural requirements to preserve its claim in insolvency proceedings.
Foreign lenders and bondholders with exposure to Ukrainian borrowers face the revised creditors' meeting voting thresholds. Lenders holding a minority position may find their ability to influence a restructuring plan materially reduced.
International investors with Ukrainian subsidiaries must assess whether any intra-group transactions – loans, asset transfers, or security arrangements – fall within the extended look-back period. A subsidiary entering insolvency proceedings could expose the parent to claims by the liquidator seeking to unwind those transactions.
Companies in active insolvency proceedings opened before 1 January 2025 are not automatically exempt. Where a restructuring plan has not yet been confirmed, the amended procedural rules apply. Creditors in such proceedings should verify whether they need to resubmit or supplement their proof of debt.
The compliance deadline that carries the greatest immediate risk is the proof of debt filing window. In proceedings opened after the effective date, this window runs from the date of the court's notice to creditors. Missing it places the creditor outside the initial priority ranking. Reinstatement is possible but requires a separate court application and is not guaranteed.
To discuss how these amendments affect your specific exposure in Ukraine, contact us at info@ferrazwhitmore.com.
Immediate actions for international companies
International companies with any of the exposures described above should act on the following steps without delay.
- Audit all open claims against Ukrainian counterparties. Identify every claim – trade receivable, loan, guarantee, or intercompany balance – where the Ukrainian counterparty is insolvent, near-insolvent, or subject to pending insolvency proceedings. Confirm the status of each proceeding and the applicable filing deadlines.
- Review and complete proof of debt documentation. For each claim, assemble the full documentary package now required under the amended legislation. This includes certified translations, certified account statements, and evidence of the creditor's authority to file. Do not wait for a court notice to begin this preparation.
- Assess intra-group transactions for look-back risk. If a Ukrainian subsidiary is under financial stress, review all transactions between it and the wider group over the relevant period. Any transaction that could be characterised as preferential or at an undervalue should be assessed for potential challenge by a liquidator.
- Engage with the administrator or liquidator promptly. Where proceedings are already open, establish contact with the court-appointed administrator or liquidator. Confirm whether your proof of debt has been registered, accepted, or flagged for defect. Delay in engaging with the insolvency practitioner can have procedural consequences.
- Monitor restructuring plan developments actively. Given the compressed confirmation timeline, creditors must track plan developments in real time. Any objection or proposed amendment must be submitted within the reduced procedural window.
Practitioners advising international clients in Ukrainian insolvency proceedings note that the most common error remains treating Ukrainian procedural requirements as equivalent to those of the creditor's home jurisdiction. They are not. The documentary standards, language requirements, and filing mechanics differ materially – and the consequences of non-compliance are immediate.
For context on related insolvency developments in neighbouring jurisdictions, see our alert on insolvency amendments in Russia. For a full overview of restructuring and bankruptcy support available in Ukraine, our insolvency and restructuring service page for Ukraine sets out the procedural landscape in detail. Companies facing broader commercial disputes arising from insolvency-related claims should also review our corporate disputes service page for Ukraine.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our team supports international creditors, investors, and corporate groups on insolvency proceedings, restructuring plans, and creditor rights enforcement in Ukraine and across CIS markets. We combine Portuguese civil law expertise with English common law tradition to deliver cross-border legal solutions in insolvency and restructuring matters. Our practitioners have experience working alongside local insolvency administrators and before Ukrainian commercial courts, and our cross-border practice covers both proof of debt procedures and the enforcement of foreign creditor claims. As a law firm advising international businesses in Ukraine, we help creditors build an effective strategy from the earliest stage of proceedings. To discuss your exposure under the revised insolvency legislation, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.