Insolvency law of Russia primarily contains Federal Legislation № 127-FZ «On Liquidation (Bankruptcy)» and Federal Legislation № 40-FZ «On Liquidation (Bankruptcy) of Credit Institutions». Federal Law № 127-FZ «On Liquidation (Bankruptcy)» dated 26 October 2002 (as revised) (the «Bankruptcy Act»), changing the prior regulation in 1998, to higher tackle the above mentioned issues along with a larger inability of the action. Russian bankruptcy law is meant for a broad selection of consumers: businesses and people of styles, using the exclusion of state-owned government agencies businesses, political parties and religious organizations. There’s also specific regulations for insurance providers, skilled individuals for banking institutions of the securities market, agricultural businesses and other specific regulations and companies within the natural monopolies within the power sector. Insolvency Provisions Act, credit businesses utilized in conjunction with all the conditions of the Bankruptcy Act.
Bankruptcy law offers the next phases of bankruptcy proceedings:
Statement Control (nablyudeniye);
Additional control (vneshneye upravleniye);
The primary experience of the bankruptcy procedure may be the liquidation official (trustee in bankruptcy). At various levels of bankruptcy, he’s to be decided: outside control the temporary officer, the recipient or administrative officer. Throughout the bankruptcy trustee in bankruptcy (bankruptcy official) includes a major impact around the motion of resources (home) of the consumer — the consumer and it has a vital impact around the financial and legal facets of its operations.
Insolvency Officer (Trustee in bankruptcy) works the some capabilities of the top of the debtor and it has the right to determine how a organization — the debtor may continue its function, in what order may curl or create its actions, which resources (home) is going to be set up available and under what problems, in addition to a number of legalities last and existing activities of the consumer.
Bankruptcy official state change with respect to the phase of the procedures. It’ll:
Administrative Officer (administrativniy upravlyayuschiy) within the financial situation of treatment;
The liquidator’s forces, with respect to the stage of your competition depends upon the issue. For instance, the interim director doesn’t have to handle the debtor’s matters throughout the monitoring action, but has got the to achieve this in a later stage. Within the negotiation procedure, current liabilities therefore are satisfied before additional statements are met and have concern. Claims priority:
First, the statements for individual health insurance and moral harm or problems alive;
Next, the state for violation responsibilities according of other funds and wages towards the connection to royalties and work and
Next, additional requirements, towards the fulfillment of rights, it may be using the exclusion of expected from the above defined process to fulfill the goal.
The contract involving the organization under bankruptcy, lenders as well as the consumer might be achieved at any phase of the procedures. The deal about the negotiation with respect to the consumer should be joined:
Executive Director of monitoring and monetary recovery within the amount of the consumer;
Outside manager within the stage of external control, and
Removal of the supervisor within the negotiation process.
Settlement Agreement with respect to the bankruptcy creditors and approved systems require a simple majority (50% + 1 vote) accepted the bankruptcy creditors and approved systems for that meeting of lenders.