COMPARATIVE STUDY OF THE BANKRUPTCY PROCEDURE OF STATE-OWNED ENTERPRISES AND THEIR SETTLEMENTS WITH CREDITORS IN UKRAINE AND EU COUNTRIES: ECONOMIC AND LEGAL ASPECTS

Abstract

One of the key prerequisites for ensuring the stability of the national economy in the conditions of war and deepening crisis processes is the effective functioning of debt restructuring mechanisms and bankruptcy procedures. Given Ukraine's European integration course, studying international experience in reforming the institution of bankruptcy is of particular importance, in the countries of the European Union, as well as in countries such as China, where new modern legislation in the field of insolvency has been introduced. Particular attention is required to the issue of fair, transparent and effective settlements with creditors, including the procedure for satisfying the claims of different groups of creditors, the priority of repayment of obligations, as well as mechanisms for reaching agreement within the framework of restructuring plans. Successful resolution of these issues is critically important for ensuring a balance between the interests of the debtor and creditors, restoring confidence in the financial and economic system and increasing the country's investment attractiveness. Studying the best international practices allows borrowing effective solutions and adapting them to national realities. Therefore, the study of the current state, problems and prospects for reforming the institution of bankruptcy in Ukraine is timely and has not only theoretical but also practical significance for ensuring the economic stability of the state, the development of the legal system and integration into the legal space of the European Union. The purpose of the study is to conduct a comprehensive economic and legal analysis of bankruptcy procedures of state-owned enterprises and their settlements with creditors in Ukraine in comparison with the practices of the European Union countries to identify effective approaches to reforming national legislation. The research methodology consists of the following methods: comparative legal method, analytical method, historical legal method, formal logical method. The study found that the legislative regulation of bankruptcy procedures in Ukraine is gradually approaching European standards, through the implementation of the provisions of Directive (EU) 2019/1023 on debt restructuring and discharge. At the same time, the harmonization process requires not only a formal update of norms but also ensuring proper law enforcement practice. Comparative legal analysis showed that in the EU, the USA and China there are more flexible and economically oriented approaches to preventive restructuring, with special attention to early intervention, rehabilitation of enterprises and preservation of jobs. The Ukrainian model still retains a predominantly liquidation nature of the procedures, which reduces the economic efficiency of bankruptcy as a tool for financial recovery. A particular difficulty in Ukraine is the bankruptcy of state and municipal enterprises, which are often of strategic importance or are closely related to socially important functions. Because of this, the application of general bankruptcy procedures to them is limited, and the rehabilitation mechanisms are ineffective. Analysis of the experience of public-private partnerships in the context of bankruptcy indicates the need to create separate procedures that take into account the specifics of such projects. The effectiveness of enforcement proceedings and the protection of creditors' rights also remain problematic, especially in cases with state ownership. Without increasing the level of legal certainty and predictability of judicial practice, the reform in the field of bankruptcy will remain declarative.