On 30 March 2017, the Supervisory Board, which coordinates the new financial restructuring procedure, unveiled the list of sole arbitrators approved by preferential voting of the Arbitration Committee.
Redcliffe's partners Olexiy Soshenko, Head of the Banking and Finance and Debt Restructuring practices, and Sergiy Gryshko, Head of the Dispute Resolution practice, were elected to settle disputes arising in financial restructuring procedures. While Olexiy Soshenko will be called upon to participate in disputes arising from general arbitral procedures and approval of restructuring plans, Sergiy Gryshko will act as an arbitrator under general procedures.
The Supervisory Board, the Secretariat and the Arbitration Committee were established according to the new Law "On Financial Restructuring". The Secretariat will be responsible for processing individual restructuring cases, and the Arbitration Committee will resolve any disputes between parties through the appointment of an independent and qualified arbitrator selected from an officially approved list.
Under the new financial restructuring framework, introduced with the help of the EBRD and the World Bank, lenders and borrowers will be able to rely on consensual out-of-court debt restructuring to restructure their loan agreements. The law aims to support the return of distressed Ukrainian companies to financial stability through mechanisms such as loan rescheduling, partial debt forgiveness and the conversion of debt into equity. The law provides a limited standstill on lender action and protection to borrowers from the initiation of new bankruptcy proceedings while restructuring negotiations are ongoing.