In 2016, the Ukrainian parliament passed the Law on Financial Restructuring (the "Financial Restructuring Law") with the aim of creating a workable procedure for voluntarily restructuring debt obligations of Ukrainian borrowers. Technically, the Financial Restructuring Law became effective on 19 October 2016 but did not become operational because the required bodies envisaged in the Financial Restructuring Law were not in place.
In April 2017, the Financial Restructuring Secretariat (the "Secretariat") – a special body responsible for providing administrative support during voluntary financial restructurings carried out under the Financial Restructuring Law – becomes operational. The establishment of the Secretariat was preceded by the election of the Financial Restructuring Arbitration Committee in March 2017 and the Financial Restructuring Supervisory Council in late 2016.
The launch of the Secretariat marks the actual effectiveness of the Financial Restructuring Law. Ukrainian corporations can now restructure their debts in accordance with the Financial Restructuring Law. In order to commence the voluntary debt restructuring process, a Ukrainian debtor should submit a restructuring application to the Secretariat.