BANKRUPTCY PROCEDURE FOR MOTOR TRANSPORT BUSINESSES

Abstract

The article explores the bankruptcy procedure for motor transport business entities. The procedure is regulated by the Code of Ukraine on Bankruptcy Procedures. The Code enshrines the procedures in court (disposing of assets; reorganization; and liquidation) (Article 6) and pre-trial investigation procedures (reorganization) (Article 4–5). The paper provides an overview of the bankruptcy procedure for motor transport businesses, analyzes existing research on the topic, and describes the court-prescribed procedures for disposing of assets, reorganization, and liquidation (Article 6). This article delves into the research conducted by domestic and international scholars pertaining to the bankruptcy of business entities, and the associated court procedures. The disposal of assets is elaborated in Chapter II of the Code of Ukraine on Bankruptcy Procedures. The reorganization process is bifurcated into pre-trial and court proceedings, with Chapter III of the Code of Ukraine on Bankruptcy Procedures containing the Resolution for the court procedure of reorganization. Finally, the liquidation process is defined in Chapter IV of the Code of Ukraine on Bankruptcy Procedures. To conduct this research, various methods were used, including legal, hermeneutic-semantic, system-structural approaches, and others. The legal method was used to examine the legislative framework for the bankruptcy procedure for motor transport businesses. The hermeneutic-semantic method was used to identify the general characteristics of the bankruptcy procedure for motor transport businesses, the procedures in court (disposing of assets; reorganization; and liquidation) (Article 6), and pretrial investigation procedures (reorganization) (Article 4–5), and to analyze the scientific works on the mentioned issue. The system-structural method helped to identify potential amendments to the Code of Ukraine on Bankruptcy Procedures and the Law of Ukraine “On Motor Transport” to better regulate the bankruptcy of motor transport businesses. The study proposes amendments to Chapter VII “Features of the bankruptcy proceedings for some categories of debtors” of the Code of Ukraine on Bankruptcy Procedures by adopting articles regulating the bankruptcy procedure for motor transport business entities. It also recommends introducing regulations to the Law of Ukraine “On Motor Transport” to handle the bankruptcy procedure for these entities. These amendments will provide motor transport businesses with a set of standards to follow in the event of bankruptcy and help to properly regulate the corresponding procedures.