A PLAN OF PROTECTION FROM PREMEDITATED BANKRUPTCY IS DEVELOPED IN THE RUSSIAN FAR EAST

Strategic enterprises of the Russian Far East may soon receive legislative protection from premeditated bankruptcy. To achieve this goal, the Ministry for the Development of the Russian Far East has developed a draft law that introduces some amendments to the law on insolvency.

In particular, the ministry proposes to provide for a special procedure for filing a bankruptcy petition for strategic enterprises, exclude the conclusion of an amicable agreement from the procedures applied to such debtors and refuse to convene a general meeting of creditors in order to reduce the risk of abuse by unscrupulous persons.

Additionally, it was proposed to introduce a supervisory body in case of bankruptcy, the role of which will be performed by the government committee on the development of the region.

It will issue the permits for filing a bankruptcy petition for strategic enterprises. It will also be delegated other powers when making key decisions in such bankruptcy cases.

In addition to controlling the insolvency procedure itself, the draft law contains proposals to prevent situations leading to bankruptcy as well. In particular, the application of the tax incentives, the establishment of special conditions for the purchase of goods and services.

According to the Minister of the Development of the Far East and the Arctic, the draft law will not only support the strategic enterprises themselves, but also help ordinary citizens not to lose their jobs and important consumer goods.