“Spenser & Kauffmann” Associate has spoken at a meeting as an expert of the UBA committee

“Spenser & Kauffmann” Associate has spoken at a meeting as an expert of the UBA committee

“Spenser & Kauffmann” Associate Andrii Hvozdetskyi took part in the meeting of the UBA Committee on Procedural Law “Judicial Reform in action: interim measures in the economic process”. 

One of the most discussed topics was the question of realization of the security measures in disputes with problem banks.

A. Hvozdetskyi reminded that in August 2015 the restrictions in the securing of claims on insolvent banks or Fund Deposit Guarantee in the way of property or monies arresting or prohibiting the defendant to perform certain actions were accepted by the Verkhovna Rada of Ukraine.  Though, as a rule, debtors start to seek a legal protection after the banks action starts – filing lawsuits, repossession, mortgage or pledge.

«In that case other, more effective ways of ensure (despite arresting and the prohibition for bank to perform certain actions), which lead to the set goal”, – he assured, putting the example of successful support of disputes against JSC “Delta Bank” while the temporary administration, and then  in the liquidation procedure.

According to Mr. Hvozdetskyi, the institute of a counter support in the proposed wording of project can not be estimated unambiguously. “With a view of defendant protecting from the procedural abuse, the legislator actually creates the conditions for a continuous chain of cases only to ensure the action”, – he said, expressing the doubts that this somehow will promote the observance of reasonable time spans.

“In addition, the additional costs for the courts deposit would be charged in the way of providing counter, the cost of multi-trial or the court fee of the side who really needs the protection. Instead of an effective protection we may get such loadings, at which it is cheaper and safer not to go the the court at all”, –  he concluded.

The “Spenser & Kauffmann” lawyers team has a significant experience in successful representation of the big business interests in disputes with problem banks, in particular, the recovery, debt restructuring, the recognition void loan agreements and termination. “Spenser & Kauffmann” specialists involved to the analysis of judicial reform in Ukraine and constantly work on proposals to improve the access and efficiency of justice to create clear and attractive investment climate for business and the real possibilities of its protection, including through the competent jurisdictional authorities.