This issue considers the most important provisions of the resolution adopted at the Plenary Session of the Supreme Commercial Court of the Russian Federation (the “SCC”) No. 88, dated 6 December 2013, “On Accrual and Payment of Interest on Creditors’ Claims in Insolvency” (the “Resolution”). The Resolution resolves a number of important practical issues and creates new regulations governing, in particular:
- the introduction of uniformly accruing moratorium interest on the amount of outstanding indebtedness in lieu of any contractual interest and penalties payable to any creditors once the supervision stage is introduced in respect of a debtor;
- the arrangement of payment of interest upon termination of the insolvency proceedings;
- homogenisation of the position of creditors asserting claims at different stages of the insolvency proceedings; and
- the discounting of debt related to the claims which have not yet matured as on the date of their record in the register of creditors by the amount of interest due for future periods. The provisions of the Resolution also intend to restrain wilful abuses of the insolvency process.
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