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Resolving Insolvency

1. 

Creditor assembly cannot approve selling debtor’s assets above 100 base values without auction. (New)

Reform influence:  It maximized the profitability of the sales, reduced the duration of satisfaction of creditors' claims and shortened bankruptcy terms.
The reform prevented the collusion of the creditors and abuse of main creditor’s powers.

Entered into force:  4 April 2014

Legislation: 

Law of the Republic of Belarus No. 104-З of 4 January 2014.


2. 

Debtor’s assets could be sold without payment commitments, commitments arising out of labor relations and causing damage to life and health of individuals by debtor.

Debts are exclured from during realizations of debtor’s assets. These debts can be redeemed at the expense of profit from selling of the enterprise.

Reform influence: 

It shortened bankruptcy terms (assets without debts are more attractive for investors, fasten registration of documents and affiliation), ensured transparency, maximized the profitability of the sales, cut on remuneration for manager and other expenses and provided bigger amount of recovery of the creditors’ claims.

Entered into force: 4 April 2014

Legislation: 

Law of the Republic of Belarus No. 104-З of 4 January 2014.


3.

Creditor assembly has right to choose a buyer and a price for assets that haven’t been sold during auction.

Reform influence:  It shortened bankruptcy terms (assets without complicated procedures are more attractive for investors, faster registration of documents and affiliation), ensured transparency, maximized the profitability of the sales, cut on remuneration for manager and other expenses and provided bigger amount of recovery of the creditors’ claims.

Entered into force: 4 April 2014

Legislation: 

Law of the Republic of Belarus No. 104-З of 4 January 2014.


4. 

During the bankruptcy procedures in case of a failure of auction the assets are sold to sole bidder at starting price plus 5%. In case of failure of bidding – onbidder terms.

Reform influence:  It shortened bankruptcy terms and minimized bankruptcy procedures expenses.

Entered into force: 4 April 2014

Legislation: 

Law of the Republic of Belarus No. 104-З of 4 January 2014.


5.

The Asset’s starting price during the first repeated auction as a part of bankruptcy procedure could be reduced up to 10% without creditor’s permission, the second and the third repeated auction – with creditor’s permission up to 50% and the fourth and other repeated auction – with creditor’s permission more than 50%.

Reform influence:  It shortened bankruptcy terms and bigger amount that can be recovered of the creditors’ claim.

Entered into force:  4 April 2014

Legislation: 

Law of the Republic of Belarus No. 104-З of 4 January 2014.


6.

United State Bankruptcy Database has been launched.

Reform influence:  It shortened bankruptcy terms, reduced bankruptcy procedures expenses and bigger amount that can be recovered of the creditors’ claim.

Entered into force:  3 quarter 2014

Legislation: 

Law of the Republic of Belarus No. 104-З of 4 January 2014.

 

7*. 

Quick access to information about debtor and minimization of possible debtor’s delay tactics.

Reform influence: 

Shortened bankruptcy terms, more clear debt enforcement procedured and bigger amount that can be recovered of the creditor’s claim.

Entered into force:  с 23 мая 2013 г.

Legislation:

Resolution of the Counsil of Ministers of Belarus No. 391 of 18 May 2013.

 

8*.

The platform for electronic trading by debtor’s assets has been created.

Reform influence: 

It reduced the duration of satisfaction of creditors' claims, ensured transparency and maximized the profitability of the sales.

Entered into force:  25 January 2013 г.

Legislation: 

Resolution of the Ministry of Economy of Belarus No. 100 of 21 November 2012.

 

9*.

The list of legal entities of strategic importance for Belarusian economy that could not be bankrupted has been strongly reduced.

Reform influence: 

It allowed to ensure the creditor’s right to claim assets of the debtor belonging to the State (full or partially), guaranteeing the turnover of bankruptcy assets and engaging the property in civil circulation.

Entered into force:  1 May 2013

Legislation: 

Resolution of the Counsil of Ministers of Belarus No. 339 of 30 April 2013.