Bankruptcy

The Project “Insolvency Phase II: Efficiency of Insolvency Proceedings in Russia” (in consortium with GTZ and Schultze & Braun) (2002-2004)

FBK carried out this project in a consortium with GTZ and Schultze & Braun during 2002-2004. The aim was to improve insolvency and bankruptcy procedures to facilitate a more efficient release of assets locked up in insolvent companies, thus permitting these resources to be mobilized and used effectively for the development of the Russian economy.

FBK developed recommendations and proposals on amendments to legislation on bankruptcy and administrative receivership and prepared appropriate draft regulations.

We also built up bankruptcy procedure monitoring systems which involved:

• >  developing appropriate procedures and determining valuation criteria
• >  designing standard reporting forms
• >  creating computer-assisted control systems
• >  developing monitoring system software

In conjunction with conventional field inspections, this enabled more frequent inspections and greater control efficiency.

FBK also delivered training programs to officials at Russia’s Federal Service of Financial Recovery and Bankruptcy (FSFRB), administrative receivers and judges.

We held 14 workshops in Russia’s federal districts, including:

• >  a workshop for executives of the central and regional offices of the FSFRB: “Problems faced by the FSFRB in the Practical Application of the Federal Law “On Insolvency (Bankruptcy)”
• >  Workshops for employees of Russia’s Ministry of Justice: “On the Role of the Regulatory Authority in Applying the new Federal Law “On Insolvency (Bankruptcy)” and on “Supervision over Self-Regulating Organizations of Administrative Receivers”
• >  Workshops for administrative receivers: “The Code of Professional Ethics for Administrative Receivers”

We have also assisted in insolvency issues, including participation in setting up new professional associations, developing the conceptual framework of the administrative receiver’s profession, working out a draft Code of Professional Ethics and Requirements for Administrative Receivers and making recommendations on quality control programs.

FBK published methodological and practical materials on the project.

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