On 31 December 2009 a much anticipated federal law permitting “debt to equity” swap for Russian companies came into effect. The law is part of the Russian legislative reform that has resulted during the current financial downturn, and which may assist borrowers looking to avoid insolvency.
The new law introduces certain other provisions regulating the maintenance by companies of their assets and relations with the creditors.
The amendments have been introduced to the Civil Code of the Russian Federation (the “Civil Code”), Federal Law No, 14-FZ on Limited Liability Companies (the “LLC Law”), Federal Law No. 208-FZ on Joint Stock Companies (the “JSC Law”), Federal Law No. 39-FZ on the Securities Market (the “Securities Market Law”), Federal Law No. 395-1 on Banks and Banking Activity, Federal Law No. 129-FZ on the State Registration of Legal Entities and Entrepreneurs.
The Duma adopted the law on 23 December and it was signed by the Council of the Federation on 25 December 2009.
|