Rehabilitation as a measure taken to prevent the bankruptcy of developers

The insolvency of developers remains an acute socio-economic problem, their rehabilitation in order to protect the rights of citizens who have invested their funds in construction requires proper legal regulation, which is currently virtually absent. The authors conclude that the rehabilitation considered in this context has neither a specific legal status nor a formalized implementation mechanism. The standard practice of additional financing, which is essentially the only type of rehabilitation used in bankruptcy cases of a developer, according to the authors, also requires regulation. Social, economic, legal and even political aspects are manifested in the relations under consideration, which complicates the development of unambiguous solutions. It is concluded that the current mechanisms based on departmental acts, business custom, administrative and contractual practice are aimed at completing the construction of a certain facility, while preventing the bankruptcy of a developer is recognized as an optional task, which is at odds with the general understanding of rehabilitation in the bankruptcy law. In such a situation, special regulated rehabilitation measures are in demand to prevent the bankruptcy of the developer.