Background

미얀마에서 새로운 파산법(Insolvency Law 2020, 이하하“파산법”)이 2020년 03월 25일부터 시행되었고, 이어 그 하위 규정인 파산규정(Insolvency Rules 2020, 이하 “파산규정”)이 2020년 4월 28일 시행되었습 니다. 이에 따라, 기존의 양곤 파산법(The Yangon Insolvency Act, INDIA Act III, 1909) 및 미얀마 파산법 (The Myanmar Insolvency Act, INDIA Act V, 1920)은 폐지되었습니다. 한편, 현행 미얀마 회사법에도 회 사 청산에 관한 규정이 존재하나, 본 파산법의 시행으로 인하여 금융기관을 제외한 미얀마에 설립된 회사의 파 산, 회생 및 청산 절차는 파산법의 적용을 받게 됩니다(파산법 제418조). 

The COVID-19 pandemic triggered severe economic shock, particularly in countries like Myanmar that rely heavily on labour-intensive industries. The recent change in the government has added further concerns to the political state of Myanmar. With this recent set of events, we have seen foreign investors and suppliers face difficulty in recovering debts in Myanmar. This Alert sets out actions that may be considered by creditors towards recovering debts from a Myanmar company.

Dispute Resolution

Looking Back: 2020

2020 was a year of numerous regulatory changes, in particular to address the economic and social ramifications of the COVID-19 pandemic. Ongoing stringent measures were imposed in September as the second wave of the pandemic took hold in the country. Directives were issued to implement Stay-at-home measures and travel bans, and to give out allowances for employees insured under the Social Security Board ("SSB") in the private sectors.

Myanmar’s legal system is governed by both old and new laws and regulations, as well as internal policies and practices of the Myanmar authorities. Many laws dating back to the colonial period and post-independence period are, with certain changes, still in force. Since its political and economic opening in 2011, Myanmar has embarked on a comprehensive reform process and is currently overhauling its legal framework. Existing laws were revised or replaced, and new laws enacted.

Considerations for Distressed Transactions  

Further relief for Myanmar hotels - exemption on licence fees and deferment of land lease payments

The hotel and tourism sector in Myanmar and across the globe has been severely affected by the COVID-19 pandemic. Since 19 March 2020, Myanmar has closed all land borders with its neighbouring countries and from 31 March 2020 to 15 May 2020, all international commercial passenger flights are banned from landing in Myanmar. As a result, the occupancy in many hotels is currently running low (some in single digits) and certain hotels have temporarily ceased operations.

The enactment of the new 2020 Insolvency Law ("Insolvency Law") on 14 February 2020, which was made effective on 25 March 2020 has cast the framework for corporate insolvency, personal insolvency as well as rehabilitation and corporate rescue in Myanmar. In addition to these changes, the Insolvency Law also provides for the roles and powers of a liquidator appointed in order to wind up a company.

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In brief

1. Enactment of the Insolvency Law