RusBankrot
We know everything about bankruptcy
24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
Bankruptcy law to be changed in Belarus
Speaking to the representatives of the National Assembly of Belarus on April 27, 2022, the head of the Ministry of Economy presented a new draft law “On the settlement of insolvency”. According to Alexander Chervyakov, if the law is adopted, the state will be able to prevent the bankruptcy of companies and conduct their pre-trial rehabilitation more quickly. What is more, the draft regulatory legal act sets out provisions on the procedure for conducting court cases related to bankruptcy.
As Chervyakov noted, the system proposed by the authorities should provide businessmen with the opportunity to reorganize their businesses in time, not allowing them to use the procedures described in the law for the redistribution of property. On the other hand, unpromising companies are proposed to be liquidated by selling the assets to interested investors. Thus, business and production will be preserved without negative consequences for the social sphere.
According to the document, defense and energy enterprises will not fall under bankruptcy, regardless of their form of ownership. The Government of Belarus will make up the specific list of such companies.
The powers of the state bodies in the field of bankruptcy are also expected to be expanded. In particular, executive committees will have the right to organize insolvency prevention in the jurisdictional territory. A specific description of how exactly this is supposed to be done, as well as what the bankruptcy prevention procedure will consist of, is not reported.
The reorganization of companies will take place in two stages. At the first stage, designed for three years with a possible extension for another two years, the enterprise will be able to mobilize resources. In the event that economic activity cannot be brought back to normal, the law provides for the possibility of moving to the second stage of rehabilitation (that is, obtaining a deferment and concluding a settlement agreement for a period of 3 to 10 years).
There is a number of other interesting points in the law. For example, the director of a company that is unable to pay debts for 6 months in a row can initiate a reorganization. The creditor, within the same period, without waiting for the compulsory execution, will receive the right to apply to the court after that. The single creditor on the part of the state will be the tax authority, thereby accumulating all the requirements from the budget.
The role of the court in carrying out the reorganization and liquidation procedures will also be changed. It will retain only the function of opening and closing such cases, while specific decisions will be made by the executive authority and the meeting of creditors.
The law proposes to liquidate the debtors who do not have assets, but to finance the procedure not at the expense of the state, but at the expense of the person who initiates the insolvency. This should reduce the burden on the state budget. It is known that the deputies have already adopted this draft in the first reading.
As Chervyakov noted, the system proposed by the authorities should provide businessmen with the opportunity to reorganize their businesses in time, not allowing them to use the procedures described in the law for the redistribution of property. On the other hand, unpromising companies are proposed to be liquidated by selling the assets to interested investors. Thus, business and production will be preserved without negative consequences for the social sphere.
According to the document, defense and energy enterprises will not fall under bankruptcy, regardless of their form of ownership. The Government of Belarus will make up the specific list of such companies.
The powers of the state bodies in the field of bankruptcy are also expected to be expanded. In particular, executive committees will have the right to organize insolvency prevention in the jurisdictional territory. A specific description of how exactly this is supposed to be done, as well as what the bankruptcy prevention procedure will consist of, is not reported.
The new law should strengthen the protection of labor collectives of companies that will be able to actively participate in the activities of creditors.
In particular, the participation of professional associations of workers will be mandatory in case of collection of pension contributions.The reorganization of companies will take place in two stages. At the first stage, designed for three years with a possible extension for another two years, the enterprise will be able to mobilize resources. In the event that economic activity cannot be brought back to normal, the law provides for the possibility of moving to the second stage of rehabilitation (that is, obtaining a deferment and concluding a settlement agreement for a period of 3 to 10 years).
There is a number of other interesting points in the law. For example, the director of a company that is unable to pay debts for 6 months in a row can initiate a reorganization. The creditor, within the same period, without waiting for the compulsory execution, will receive the right to apply to the court after that. The single creditor on the part of the state will be the tax authority, thereby accumulating all the requirements from the budget.
A special order of distribution of proceeds from the sale of collateral will be established.
These funds are supposed to be used primarily for contributions to the Social Protection Fund and for wages. Only after these payments, creditors and banking institutions will be able to claim the property. They will be asked to share 20% of the funds received for legal costs and as a payment to the national budget.The role of the court in carrying out the reorganization and liquidation procedures will also be changed. It will retain only the function of opening and closing such cases, while specific decisions will be made by the executive authority and the meeting of creditors.
The law proposes to liquidate the debtors who do not have assets, but to finance the procedure not at the expense of the state, but at the expense of the person who initiates the insolvency. This should reduce the burden on the state budget. It is known that the deputies have already adopted this draft in the first reading.
29.04.2022
