The main purpose of bankruptcy legislation is to create conditions for restoring the solvency of debtors and the fullest possible satisfaction of creditors’ claims. Achieving this goal directly depends on the peculiarities of the legal status of the debtor, his financial condition and the chosen method of debt repayment in the bankruptcy procedure. Due to the long-term lack of an effective mechanism for legal regulation of bankruptcy of state-owned enterprises, the introduction of numerous moratoriums on bankruptcy proceedings, creditors are deprived of the opportunity to protect their rights and obtain satisfaction of claims, and state-owned enterprises to restore their solvency. These circumstances also directly affect the procedural activities of the court in considering the bankruptcy of state-owned enterprises.

The purpose of the study is to consider the features of bankruptcy of state-owned enterprises, procedural issues, outline the issues that arise when applying the rules of the Bankruptcy Code of Ukraine and special legislation in bankruptcy cases.

The article analyzes a number of legislative acts which, along with the Bankruptcy Procedure Code of Ukraine, regulate the issues of conducting bankruptcy proceedings in relation to various types of state-owned enterprises. Problems of their application caused by their contradiction and inconsistency are highlighted. The legal approaches to the consideration of bankruptcy cases of state-owned enterprises are determined on the examples of the practice of commercial courts.

It is concluded that the exclusion of state-owned enterprises from the list of subjects of bankruptcy leads to an increase in the amount of debt due to the application of penalties, the accrual of which would be suspended in the bankruptcy case due to the moratorium.

The content of the legislation on bankruptcy of state-owned enterprises is not coordinated with the requirements of market self-regulation, the conditions for the formation of a healthy competitive environment and the principles of equality of all economic entities.

Together with the inconsistency with the rules of bankruptcy law in essence, these rules are inconsistent in form (process), which complicates their application and affects the financial condition of enterprises and the procedural activities of the court.

Proposed changes to the legislation on bankruptcy of state-owned enterprises.

It is necessary to bring the above-mentioned norms of the Laws in line with the Bankruptcy Procedure Code of Ukraine or to concentrate all provisions on the peculiarities of regulation of bankruptcy procedures of state enterprises, which are undoubtedly prohibitions on such proceedings, only in the Bankruptcy Procedures Code in compliance with all legal requirements.

Bibliography

Authored books

1. Grabovan L, Pohashennia vymoh kredytoriv u protseduri bankrutstva: teoriia i praktyka (Feniks 2018) (in Ukrainian).

2. Poliakov B, Pravo nespromozhnosti (bankrutstva) v Ukraini: pidruchnyk dlia studentiv vyshch navchalnyh zakladiv (In Iure 2011) (in Ukrainian).

Journal articles

3. Nykytchenko N, Donkov S, ‘Osoblyvosti protsedur bankrutstva ob’iektiv derzhavnoi vlasnosti’ (2020) 4 Pravo Ukrainy 216–24 (in Ukrainian).

4. Podtserkovnyi O, ‘Shchodo pytan pro systemnu pobudovu vykliuchen z prava bankrutstv ta poperedzhennia umysnoho spysannia borhiv’ (2011) 1 Sanatsiia ta bankrutstvo 101–4 (in Ukrainian).

 Websites

5. Poliakov B, ‘Pryntsypy domino, abo Yak KzPB mozhe sprovokuvaty lantsiuhove padinnia pidpryiemstva krainy’ (Zakon i Biznes, 03.08–09.08.2019) <https://zib. com.ua/ua/print/138714-yak_kzpb_mozhe_sprovokuvati_lancyugove_padinnya_ pidpriemstv_.html> (accessed: 04.04.2021) (in Ukrainian).