On 24th April, 2020 the Belarusian Government finally adopted the long-awaited first set of anti-crisis measures to support the economy. Whereas in light of the Covid-19 coronavirus pandemic the vast majority of European countries are implementing measures concerning insolvency proceedings, restructurings and rights of creditors generally, the economic response in Belarus does not yet include amendments to bankruptcy law. It is reported that a bankruptcy proceedings standstill is being considered by the Belarusian Government and Supreme Court.
Persons entitled to file an insolvency application and insolvency (IS) proceedings entry criteria:
1) A non-secured creditor or a secured creditor (regarding the non-secured part of the claim), in cases where:
Preconditions for starting an LPP:
1) no liquidation initiated against the debtor;
2) in the previous 5 years, the debtor has not implemented and completed LPP;
1) Debtor prepares OCLPP plan & obtains approval from creditors:
- more than 50% non-secured creditors (total of principal claims);
- at least 2/3 secured creditors (total of principal claims).
Who may not vote (on approval the plan): persons in the same group of companies, shareholders (natural persons) with decisive influence and persons who acquired claims against the debtor from the aforementioned persons within the previous 2 years.
2) Debtor and creditors agree on supervisor's candidate during OCLPP.
The Law On Insolvency (Bankruptcy) of 13 July 2012 comes into force on 25 January 2013. The law is not introducing bankruptcy of individuals despite many voices raised in favor of this concept so far unknown to the Belarusian legal system. However, other important novelties may be summarised as follows:
In view of the forthcoming Christmas and New Year, we hope that you have been successful in your endeavours and now are happily proceeding to completion of your ongoing projects. As usual, the year-end bustle is speeding up, and Belarus is no exception. In this regard, we are glad to share with you the overview below of the most recent legal and business news.