Webinar for Commercial Court Judges and Judicial Assistants on the Application of Preventive Restructuring Held

On 6 March, a webinar for judges and judicial assistants of commercial courts entitled ‘Preventive Restructuring: The Role of the Court in Ensuring Business Resilience and Economic Recovery’ took place. The event was organised by Safe Ukraine 2030 Foundation within the framework of a grant provided by EU Project Pravo-Justice implemented by Expertise France in cooperation with the National School of Judges.

The webinar aimed to develop judges’ practical understanding of preventive restructuring mechanisms and the court’s role in applying them as tools to prevent bankruptcy, preserve viable businesses, and support economic resilience during Ukraine’s reconstruction. The webinar was delivered by trainers, including bankruptcy trustees, commercial court judges, academics and experts from EU Project Pravo-Justice.

“The preventive restructuring procedure is not yet widely used, so it is important that judges are prepared to implement it in practice. Holding such a webinar helps to deepen understanding of the mechanisms involved in this procedure, as well as to draw attention to the key provisions of EU Directive 2019/1023,” said Volodymyr Polishchuk, lecturer and coordinator at the Trainer Training Department at the National School of Judges of Ukraine and a retired judge of the Northern Commercial Court of Appeal.

Iryna Zharonkina, Enforcement and Protection of Property Rights Component Lead at EU Project Pravo-Justice, explained that the experience of European countries shows that the success of preventive restructuring procedures depends on how much everyone involved in the process understands it, particularly judges, as they play a key role in the procedure.

“That is why this webinar focuses on the role of the court in the preventive restructuring procedure. We hope that it will help judges to better understand the practical aspects of this tool and contribute to its effective application in Ukraine,” noted Iryna Zharonkina.

Roman Militsianov, a judge at the Western Commercial Court of Appeal, spoke about the key aspects of preventive restructuring: its concept, objectives and principles, how it differs from bankruptcy proceedings, and the role of the court in ensuring oversight and balancing the interests of the parties involved.

“Preventive restructuring is a system of measures designed to prevent or avert a debtor’s insolvency. In this procedure, the court assesses the purpose of the measures, approves the restructuring plan, ensures a balance between the interests of the debtor and the creditors involved, and provides procedural safeguards. Unlike bankruptcy proceedings, it allows for early action, reduces duration and costs, and establishes the practice of applying this new legal construct,” explained Roman Militsianov.

Maja Praljak, an international expert at EU Project Pravo-Justice and Deputy President of the Commercial Court in Zagreb (Croatia), presented European case law on the application of preventive restructuring, in particular the challenges Croatia faced after the implementation of Directive 2019/1023.

“Croatia’s experience shows that the greatest challenge in implementing preventive restructuring relates not only to legislative amendments, but also to the development of new jurisprudence. The courts must learn to distinguish between situations where the procedure genuinely helps to save a viable business and those where it is used merely to delay bankruptcy,” emphasised Maja Praljak.

Rodion Poliakov, Senior Research Fellow at the Burchak Research Institute of Private Law and Entrepreneurship of the National Academy of Legal Sciences of Ukraine, presented an academic approach to understanding the institution of preventive restructuring and its historical development. He outlined the evolution of this legal institution, its key conceptual foundations and the patterns of its development in the Ukrainian and European contexts.

The participants noted that this webinar had deepened their understanding of the preventive restructuring mechanisms and the role of the courts in ensuring economic resilience and business recovery.