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LAW OF THE REPUBLIC OF MOLDOVA

of June 29, 2012 No. 149

About insolvency

(as amended on 21-04-2022)

The parliament adopts this organic law.

Chapter I General provisions

Article 1. Purpose and sphere of regulation

(1) the Purpose of this law is creation of the legal basis relating to establishment of the collective procedure for satisfaction of requirements of creditors at the expense of property of the debtor by application of the procedure of restructuring to it or insolvency proceedings and distributions of end product.

(2) Provisions of this law are applied to legal entities, irrespective of type of property and form of business, to individual entrepreneurs, including to owners of the entrepreneurial patent, the insurance companies, the organizations of collective investment into securities, the trust companies, non-profit organizations registered in the Republic of Moldova in accordance with the established procedure. This law is not applied to banks.

(3) the State, administrative and territorial units and legal entities of the public law are not subjects of insolvency.

(4) Process of insolvency is performed according to provisions of the Code of civil procedure and this law.

Article 2. Basic concepts

The basic concepts used in this law mean:

the managing director of insolvency process - person who is designated according to this law for implementation of supervision of the debtor and/or management of its activities during observation, in the course of insolvency and/or for the term of restructuring according to the powers established by this law and which legal status is regulated by the Law on the authorized managing directors No. 161/2014;

the dependent consumer - the consumer who for the technical, economic reasons or because of the established regulations cannot choose the supplier; converting of debt in the share - transformation to shares of debt of the company upon the demand of his creditors;

the agreement of investment into housing construction - the legal act, as if it was called to which the debtor undertook to construct or provide construction and transfer into the ownership of the buyer of housing in sense of the Law on housing No. 75/2015, and the buyer undertook to pay contract price and to accept housing;

the creditor - physical person or legal entity which has right to claim against property of the debtor and can prove the requirement for property of the debtor according to this law;

unsecured creditors - class of creditors whose requirements to the debtor arose before initiation of process of insolvency also are not provided with property guarantees;

secured creditors - class of creditors whose requirements to the debtor arose before initiation of process of insolvency also are provided with property guarantees according to the law;

creditors of weight are creditors whose requirements to the debtor arose after initiation of process of insolvency and are subject to execution previously in the current procedure in process of their origin;

the debtor - any person specified in part (2) Articles 1, having debt on payment of debt obligations which completion date came, including the tax liabilities concerning which the application for initiation of process of insolvency is submitted to degree of jurisdiction;

the debtor experiencing financial difficulties - the debtor who, though fulfills or is capable to fulfill receivable obligations is in provision of inevitable insolvency;

financing after initiation of procedures - the financing provided to the debtor after initiation of process of insolvency including financial and commercial creditors;

insolvency - the financial position of the debtor which is characterized by its inability to fulfill monetary commitments which completion date came, including the tax liabilities. Insolvency is supposed in case of violation by the debtor of payment due date more than for 60 days;

insolvency - the financial position of the debtor which is characterized by its inability to fulfill payment obligations;

liquidation of property - the procedure applied to the debtor within complex process of insolvency, consisting in use of debit weight for the purpose of receipt of money for satisfaction of requirements of creditors;

the liquidator - person designated according to the law to direct activities of the debtor within insolvency proceeding according to the procedure as to general, and the simplified procedure agrees the competence established by this law;

creditor weight - the liability consisting of all obligations of the poor debtor to creditors;

debit weight - property, including money in cash and non-cash form, in national and foreign currency, being property of the debtor for date of initiation of process of insolvency, acquired or compensated during this process, except for property on which according to the law recovery by enforcement cannot be turned;

the moratorium - delay on certain completion date by the debtor of monetary commitments;

the tax liability - the obligation on tax payment, charges and other payments in the national public budget according to the procedure and on the conditions established by the tax legislation;

the liability - the obligation of the debtor to pay to the creditor certain sum of money based on the agreement or the non-contractual obligation;

the current payment obligations - taxes, charges and other payment obligations, the credits and percent on them, the charges for delay (penalty fee) estimated from the moment of initiation of process of insolvency;

the observation period - the period between day of acceptance to consideration of the action for declaration and day of initiation of the procedure of insolvency or day of approval of the plan of the procedure of restructuring or, on circumstances, introductions in insolvency proceeding;

the address of collection on debt obligations of the debtor - the procedure as a result of which the managing director of process the insolvency/liquidator turns the claim to property or the amounts constituting debt of the third party in relation to the debtor;

expedited procedure of restructuring - the procedure within which the debtor after the period of observation enters directly the procedure of restructuring;

the collective procedure - the procedure within which the recognized and approved creditors participate jointly in the address of collection on the requirements and in their compensation according to the procedure provided by this law;

insolvency proceeding - the competitive collective and egalitarian procedure of insolvency applied to the debtor for the purpose of liquidation of its property to liability covering;

the procedure of insolvency - the procedure within which the debtor after the period of observation enters the procedure of restructuring or insolvency proceeding;

the procedure of restructuring - one of procedures of process of insolvency applied to the debtor and assuming creation, approval, accomplishment and observance of comprehensive plan of measures for the purpose of financial and economic improvement of the debtor, and also repayment of its debts according to the program of satisfaction of requirements;

the simplified insolvency proceeding - the procedure within which the debtor enters directly insolvency proceeding or after the observation period, or after initiation of process of insolvency;

the program of satisfaction of requirements - the register of requirements included in the plan of the procedure of restructuring containing the size of the amounts which the debtor shall pay to creditors, in the ratio with the final register of requirements, cash flow according to the plan and payment due dates of the specified amounts;

restructuring - process of accomplishment of packet of the financial, organizational, operational and legal measures directed to financial and economic improvement of the company based on capitalization, reorganization, changes of structure of assets and production and functional process, and also implementation of other measures which are not contradicting the current legislation;

excessive debt - financial condition of the debtor which responsibility is limited to the law within the cost of its property which does not cover the obligations which are available for the debtor;

the preliminary register of requirements - the register including all requirements which arose till the observation period, registered by the interim manager as a result of their check in whom the amount requested by the creditor, the approved amount and priority of repayment of requirements are specified;

the final register of requirements - the register including all requirements to property of the debtor for date of opening of process including approved in the preliminary register and also the requirements allowed as a result of consideration of claims in which the amount requested by the creditor, the approved amount and priority of repayment of requirements are specified;

the summary final register of requirements - the register including all requirements containing in the final register as allowed, and also the requirements allowed as a result of consideration of claims.

Article 3. Method of overcoming insolvency

Insolvency is overcome by means of the complex legal procedure combining, in particular, the observation period, the procedure of insolvency continuing through the procedure of restructuring or insolvency proceeding or through other procedures established by this law and initiated by degree of jurisdiction.

Chapter II Initiation of process of insolvency. Participants of process

Part 1 Basic principles

Article 4. Participants of process of insolvency

(1) Participants of process of insolvency are: the interim manager managing insolvency process, the liquidator, creditors, creditor meeting, creditor committee, the debtor or, on circumstances, the debtor's representative, other bodies and persons established by this law.

(2) Organa and persons identified in part (1), operational making of the actions and transactions provided by this law and also implementation in the procedure for the rights and obligations of other participants of these actions and transactions provided by the law shall provide.

Article 5. Competence of degree of jurisdiction

(1) the Claim for initiation of process of insolvency is considered by degree of jurisdiction (the degree of jurisdiction considering insolvency matter), according to the jurisdictional competence established by the Code of civil procedure and this law.

(2) the Degree of jurisdiction considering insolvency matter has exclusive competence of consideration within process of insolvency of the disputes concerning debit weight. If the concerned party refers to existence of the legal dispute concerning debit weight, the specified degree of jurisdiction considers case in separate process in claim production according to the Code of civil procedure.

(3) the Degree of jurisdiction considering insolvency matter considers all circumstances concerning case on the initiative.

(4) the Degree of jurisdiction considering insolvency matter can take out determinations and without challenge of the parties if this law directly does not provide other.

(5) the Main powers of the degree of jurisdiction considering insolvency matter within this law are:

a) pronouncement of the motivated decision on initiation of process of insolvency and, on circumstances, about the introduction in the procedure of insolvency both by insolvency proceeding, and by the procedure of restructuring of the debtor;

b) consideration of objections of the debtor concerning the action for declaration of creditors and consideration of objections of creditors concerning initiation of the procedure;

c) appointment of the interim manager and establishment of its remuneration, appointment of the managing director of process of insolvency or, on circumstances, the liquidator who will manage process before its approval or, on circumstances, before its replacement with creditor meeting, and also establishment of its powers for this term;

d) shift about positions or allowance of the application about resignation of the managing director of process of the insolvency/liquidator;

e) deprivation of the debtor of the right of further management of the activities;

f) accountability of members of governing bodies of the debtor which promoted approach of its insolvency, and also the appeal to criminal prosecution authorities in connection with the punishable offenses made by them;

g) consideration of the claims submitted by managing process by the insolvency/liquidator about invalidity of the bargains concluded by the debtor before initiation of process;

h) consideration of claims of the debtor, the creditor committee or any interested person belonging to the measures taken by the interim manager managing process by the insolvency/liquidator;

i) approval of the plan of the procedure of restructuring or, on circumstances, the liquidation plan after vote for it creditors;

j) consideration of the application of the managing director of process of insolvency or creditor committee about the termination of the procedure of restructuring and the introduction in insolvency proceeding;

k) consideration of reports of the interim manager managing process of the insolvency/liquidator;

l) cancellation of the solution of creditor meeting and creditor committee;

m) removal of arrest from property of the debtor and cancellation of other measures for providing or restriction of the right of the debtor managing process of insolvency and/or the liquidator on management of debit weight and its use applied by other degrees of jurisdiction or the bodies authorized on it;

n) decision about the process termination;

o) other powers established by this law and the Code of civil procedure.

(6) treat competence of the degree of jurisdiction considering insolvency matter also judicial control of activities of the interim manager managing process of insolvency and/or the liquidator and the processes and statements of judicial nature concerning ascertaining of the facts connected with the procedure of insolvency.

(7) the Degree of jurisdiction considering insolvency matter does not perform managerial functions, they are assigned to the interim manager managing process of the insolvency/liquidator or, in exclusive procedure, to the debtor if it is not deprived of the right to manage the property. Managerial decisions can be controlled from the point of view of feasibility by creditors through their bodies.

(8) Decisions and determinations of the degree of jurisdiction considering insolvency matter are final and are subject to execution from the moment of their removal.

(9) Orders about incompatibility are not applied to the degree of jurisdiction which is considering insolvency matter, consistently passing decisions on the same insolvency matter, except for case of new trial of case after cancellation of the decision in appeal procedure.

Article 6. The writ of summons, the notification and the message concerning participants of process

(1) the Challenge of participants of process in court is performed by the degree of jurisdiction considering insolvency matter on the initiative.

(2) In the claim production regulated by this law only persons are subpoenaed as the parties, the rights or interests of which are subject to consideration in the degree of jurisdiction considering insolvency matter on the terms of competitiveness. In all other cases the provisions of the Code of civil procedure relating to not claim production in that part in what they do not contradict the conditions which are directly provided by this law are applied.

(3) the Obligation of the notification and message, except as specified, when this obligation belongs to other bodies applying the procedure, and also obligation of convocation of the meetings provided by this law is assigned, on circumstances, to the interim manager, or to the managing director of insolvency process, or to the liquidator.

(4) Notifications and messages are made by means of the registered mail, and in the cases which are directly provided by this law - and by publication in the register of insolvency matters.

(5) the Notifications and messages relating to participants of process according to part (4), are considered committed after 3 working days from the date of their publication.

Article 7. Publication of decisions and determinations

(1) Substantive provisions of decisions and determinations of the degree of jurisdiction considering insolvency matter are subject to publication in the register of insolvency matters in the cases which are directly provided by this law. Expenses on publication belong to legal costs.

(2) the Degree of jurisdiction considering insolvency matter can make the decision on publication of substantive provisions of the decision and in the local newspaper distributed in the location of the debtor or in the location of most of creditors and also on placement it on the Internet or other electronic systems.

(3) Voided.

Article 8. Appeal of decisions and determinations of the degree of jurisdiction considering insolvency matter

(1) Decisions of the degree of jurisdiction considering insolvency matter can be appealed in appeal procedure in 15-day time from the date of announcement of substantive provisions, except as specified, provided by this law. The term of appeal appeal, and also the made petition for appeal execution of decisions of the degree of jurisdiction considering insolvency matter does not stop.

(2) Determinations of the degree of jurisdiction considering insolvency matter can be appealed in cassation procedure in 15-day time from the date of their message and only in the cases which are directly provided by this law. The term of cassation appeal, and also the made writ of appeal execution of determinations of the degree of jurisdiction considering insolvency matter does not stop.

(3) According to the reasonable statement of the concerned party:

a) the appellate instance can suspend execution of decisions of the degree of jurisdiction considering insolvency matter;

b) the cassation instance can suspend execution of determinations of the degree of jurisdiction considering insolvency matter.

(4) For the purpose of consideration appeal or the writ of appeal go to higher instance in the form of the copies certified by the degree of jurisdiction considering insolvency matter, only the acts important for consideration of these claims.

(5) For each appealed decision or determination within production single case, irrespective of quantity appeal or the writs of appeal directed against them is created.

(6) Petitions for appeal are considered according to the procedure of written production in 60-day time from the date of initiation of appeal production according to the procedure, established for hearing of cases in the first instance. The appellate instance can dispose about challenge of participants of process in case of establishment of need for it. Appeal and writs of appeal are considered according to the procedure, provided by the Code of civil procedure, except as specified, provided by this law.

(7) Decisions of appellate instance are not subject to appeal in cassation procedure and come into final and legal force from the date of removal.

Part 2 Conditions of initiation of process of insolvency and preliminary actions

Article 9. Action for declaration

Process of insolvency is initiated only on the basis of the statement for initiation of process of insolvency (further - the action for declaration).

Article 10. Bases for initiation of process of insolvency

(1) Initiation of process of insolvency assumes availability for this purpose of the general or special bases.

(2) the General basis for initiation of process of insolvency is insolvency of the debtor.

(3) the Special basis for initiation of process of insolvency is the excessive debt of the debtor if the debtor is legal entity whose responsibility according to requirements of creditors is limited to its property. In this case continuation of its activities shall be the basis for assessment of property of the debtor if there is such opportunity.

Article 11. Structure and size of obligations

(1) Obligations of the debtor are considered in the structure and the size existing at the time of submission of the action for declaration if the law does not provide other.

(2) In case of determination of availability of the bases of insolvency are considered:

a) the size of monetary commitments, including outstanding amount on delivery of property, rendering services and performance of works which are subject to execution by the debtor;

b) the size of the credit debts, to loans and percent on them which are subject to payment by the debtor;

c) the extent of the damage which is subject to collection from the debtor;

d) the size of the obligations to the national public budget provided by the law.

(3) In case of establishment of insolvency of the debtor the size of the requirements consisting from is not considered:

a) penalty fee for delay and/or other financial sanctions connected with non-execution of obligations;

b) any payment obligation to members (members, shareholders) of the debtor.

Article 12. Right of submission of the action for declaration

The right of submission of the action for declaration belongs to the debtor, creditors and other persons specified in this law.

Article 13. Debtor's right to submission of the action for declaration

(1) the Debtor has the right to submit the action for declaration if there is threat of approach of its insolvency and it is possible to assume that he will not manage to fulfill the monetary commitments in the time established for their execution.

(2) the giving Right according to part (1) the action for declaration on behalf of the debtor if that is not physical person, its executive body, person who according to the current legislation has the right to represent the debtor, unitholders with the unlimited liability and the debtor's liquidators have.

Article 14. Obligation of the debtor to submit the action for declaration

(1) the Debtor shall submit the action for declaration in case of availability of one of the bases, stipulated in Article 10.

(2) the Debtor shall submit the action for declaration also if:

a) the complete satisfaction of requirements of one or several creditors which completion date came can result in impossibility of complete satisfaction of requirements of other creditors in case of approach of term of their execution;

b) during its liquidation performed according to other laws it becomes obvious that it cannot meet the requirement of creditors completely.

(3) the Debtor shall submit the action for declaration without delay, but not later than after 30 days from the date of emergence of the bases provided by part (2) this Article and part (2) Article 10.

(4) In case of not submission of the action for declaration by the debtor in cases and in time, provided by this Article, person having according to the current legislation rights of representation of the debtor, unitholders with the unlimited liability and liquidators of the debtor bear subsidiary responsibility to creditors according to the obligations which arose after the expiration provided by part (3). These persons are brought to the tort liability according to the law.

Article 15. Intentional and dummy insolvency

(1) in case of insolvency of the debtor because of his founders (members), members of executive body or other persons having the right to instruct, obligatory for execution by the debtor, or able otherwise to exert impact on actions of the debtor (intentional insolvency), specified persons bear joint subsidiary liability to creditors regarding insufficiency of property of the debtor for satisfaction of requirements of creditors.

(2) If the action for declaration is submitted by the debtor having real opportunity completely to meet requirements of creditors (dummy insolvency), damage liability, caused to creditors as a result of submission of this statement, the perpetrators specified in part bear (1).

Article 16. Contents of the action for declaration of the debtor

(The Action for declaration of the debtor shall contain 1):

a) fiscal code of the debtor and number of its accounts opened in banks and at other payment service providers;

b) size of requirements of creditors, size of percent and penalty fee for delay;

c) reasons for requirements of creditors and terms of their execution with indication of the amount of the requirements connected with indemnification, caused to life and health of persons, and also requirements for compensation of workers of the debtor;

d) amount of debts to the national public budget;

e) reasons for the bases of insolvency;

f) data on the court or arbitral actions for declaration with participation of the debtor which are taken cognizance by judicial or arbitral instances and also on writs of execution concerning property of the debtor;

g) data on property of the debtor, including its money and debt obligations;

h) offer on the candidate for position of the managing director of process of the insolvency/liquidator.

(2) In the statement the debtor can demand application of the procedure of restructuring, having proved this requirement.

Article 17. The documents enclosed to the action for declaration of the debtor

Are enclosed to the action for declaration of the debtor:

a) copy of the constituent document;

b) participant list (members) of the debtor;

c) financial statements on the last reporting date;

d) the documents certifying structure and the size of property of the debtor;

e) data from public registers on property of the debtor, including about pledged property;

f) the list of creditors and debtors with indication of creditor and receivables, addresses and identification these creditors and debtors;

g) the proof of the notification of members (unitholders, shareholders) the debtor or the proofs confirming impossibility of the notification despite everything the taken reasonable measures;

h) the proof of the notification of the State Tax Administration on intention to submit the action for declaration.

Article 18. Submission of the action for declaration by the creditor

(1) the Action for declaration can be submitted by the creditor if it has legitimate interest in initiation of process of insolvency and he can prove the requirements and the bases for initiation of process of insolvency.

(2) Voided.

(3) the Creditor has no right to initiate process of insolvency of the debtor if the last is in process of restructuring, except for case when the requirement arose after initiation of process.

Article 19. Prior notice

(1) the Creditor can submit the action for declaration only after the prior notice of the debtor.

(2) the Prior notice is considered committed if before submission of the action for declaration the debtor was informed by the creditor or the legal executive or, in the cases which are directly provided by the Tax code, authorized bodies about assumption it delays or about the representation to execution of writ of execution or other equivalent document according to the procedure which is directly provided by the Executive code.

(3) the Creditor who submitted the application for recognition of requirements according to article 140 after initiation of process of insolvency shall not produce the evidence of making of the prior notice by it.

Article 20. Contents of the action for declaration of the creditor and the documents attached to it

(The Action for declaration of the creditor shall contain 1):

a) the name/surname and name of the creditor and debtor, their location / address and other details confirmed with the statement from the corresponding public register;

b) size of requirements of the creditor, percent on the credits and penalty fee for delay;

c) reasons for requirements and term of their execution;

d) instructions on other proofs confirming the requirement of the creditor;

e) the offer of the candidate for position of the interim manager for the term of observation of the debtor;

f) other data which the creditor considers necessary for consideration of the application.

(2) are enclosed To the action for declaration of the creditor:

a) the documents confirming availability of obligations of the debtor to the creditor, the size of debts on these obligations, completion date of obligations, the basis for initiation of process of insolvency according to Article 10, other documents on which the statement of the creditor is based;

b) proof of the prior notice debtor's creditor;

c) the proof of the notification of the State Tax Administration on intention to submit the action for declaration, except as specified, when the action for declaration is submitted by the State Tax Administration;

d) the copy decisions of degree of jurisdiction or the copy of the arbitral decision which took legal effect, or the copy of the judgment on recognition of the foreign judgment or the foreign arbitral decision which took legal effect, or the decision (resolution) of the body authorized by the law which is subject to execution at that time which took legal effect.

Article 21. Adoption of the action for declaration to consideration

(1) the Degree of jurisdiction considering insolvency matter shall take cognizance of the action for declaration of the creditor submitted according to requirements of the Code of civil procedure and this law.

(2) the Degree of jurisdiction considering insolvency matter considers the action for declaration with removal of determination in 20-day time after filing of application.

(3) If after adoption of the action for declaration to consideration it is determined that there is action for declaration submitted by the debtor, and/or one or several applications submitted by creditors against the same debtor on whom the decision is not made yet the degree of jurisdiction considering insolvency matter on the initiative dispose about consolidation of these statements and consideration of their single case in the degree of jurisdiction considering insolvency matter which the first started consideration of the action for declaration.

(4) in case of adoption of the action for declaration to consideration by single case other cases which are concerning the same debtor, being in process of consideration join case on which the first action for declaration is taken cognizance. In this case all measures of providing applied on the consolidated cases in case of acceptance to consideration of actions for declaration are cancelled by right and are not valid, except the measures of providing established by determination about acceptance to consideration of the first action for declaration.

(5) the Determination provided by part (2), the degree of jurisdiction considering insolvency matter disposes about establishment of observation of the debtor by appointment of the interim manager and applies measures for providing requirements of creditors.

(If the debtor declares 6) in the action for declaration that he is in insolvency provision, and intention to stop or re-structure the activities, degree of jurisdiction expresses not later than within 20 working days accepts, with writ of summons of the debtor, the decision on initiation of process of insolvency without the right of appeal of this decision in appeal procedure and in case of expression of intention to re-structure the activities by it assigns obligation to the debtor to provide the plan of the procedure of restructuring. In this case provisions of Articles 23-29 are not applied.

Article 22. Return of the action for declaration without consideration

(1) the Action for declaration constituted with violation of requirements of Article 20 or Article 17, returns the degree of jurisdiction considering insolvency matter without consideration. Determination about return of the action for declaration without consideration can be appealed in cassation procedure.

(2) If the debtor submitted the action for declaration according to Article 14, but did not attach to it documents, stipulated in Article 17, and produced the evidence confirming impossibility of appendix of these documents, the degree of jurisdiction considering insolvency matter takes cognizance of the statement and requires submission of documents according to the procedure of legal proceedings.

(3) Voided.

Article 23. Observation period

(1) During the observation period governing bodies of the debtor can continue the current activities of the debtor and make in the course of ordinary activities payments to the famous creditors under the supervision of the interim manager if the debtor is not deprived of the right of management. If the debtor is deprived of the right of management, the current activities and payments on behalf of the debtor are made by the interim manager.

(2) the Current activities represent such transactions and financial transactions offered by the debtor for implementation during observation during regular economic activity as:

a) continuation of the activities performed under the agreement according to its subject;

b) implementation of transactions on collection of payments and the corresponding payments;

c) ensuring financing of current expenses.

(3) the Activities, transactions and payments which are beyond the conditions provided by part (2), can be authorized and/or performed by the interim manager only from preliminary approval by the degree of jurisdiction considering insolvency matter, which not later than in 5-day time from the date of receipt of the statement for approval take out motivated determination about it which can be appealed in cassation procedure according to this law.

(4) Any service provider of electric utility service, gas supply, water supply, telephone and other similar services has no right to make during observation changes to their delivery, temporarily to stop their delivery or to refuse their delivery to the debtor or concerning property of the debtor if the debtor is dependent consumer according to the law.

(5) If on the date of adoption of the action for declaration to consideration certain transaction could not be shown to the third parties, then records, copyings, intabulyation and any other specific transactions performed in such purposes made later discoveries of the procedure of observation cannot be shown to creditors, except for case when the statement or the address constituted according to requirements of the law is submitted to competent degree of jurisdiction, body or organization no later than the day preceding day of removal of determination about acceptance to consideration of the action for declaration.

(6) Petitions of the interim manager, and also the statement of creditors or the debtor concerning violation of their rights by the interim manager during observation of the debtor, except for petitions and statements which procedure of permission is regulated by separately this law are considered at open session with challenge of the interim manager, and if necessary and with challenge of the creditor who submitted the application, in time no more than 2 weeks from the date of receipt of the petition or the statement. According to the petition or the statement the degree of jurisdiction considering insolvency matter takes out determination which can be appealed in cassation procedure only by the parties which it concerns.

Article 24. Decision making about application of measures of providing

(1) the Degree of jurisdiction considering insolvency matter after receipt of the action for declaration to consideration, takes all necessary measures for the prevention of change of condition of property of the debtor during the period before initiation of process of insolvency.

(2) Along with the providing measures provided by the Code of civil procedure, the degree of jurisdiction considering insolvency matter applies the following measures of providing:

a) appoints the interim manager;

b) according to the reasonable request of creditors or the interim manager or on the initiative makes the decision on deprivation of the debtor of the right to exercise control, consisting in the right to direct the activities, to manage property and to dispose of it;

c) imposes arrest all property of the debtor and his commercial correspondence;

d) stops individual addresses of collection by creditors and forced execution concerning property of the debtor, and also current of prescriptive limit concerning the right to require forced execution of requirements of creditors to the debtor;

e) imposes prohibition on alienation by the debtor of the property or makes the decision on possibility of its alienation only based on directly expressed permission of the interim manager.

(3) in case of insufficiency of the measures of providing provided by part (2), the degree of jurisdiction considering insolvency matter can dispose about the forced drive of the debtor for its hearing. If the debtor is not physical person, these measures are applied to his representatives.

(4) Violation by the debtor of provisions of Item e) parts (2) attracts effects, stipulated in Article 104.

(5) According to the reasonable petition of the debtor the degree of jurisdiction considering insolvency matter can establish as providing measure suspension of charge of percent, increases or penalty fee of any kind, and also any other expenses connected with the requirements which arose prior to the beginning of the observation period. According to the procedure of departure charge of percent on secure requirements continues with observance of provisions of part (2) Article 50 and part (5) Article 81.

(6) Action of measures of providing continues about day of initiation of process of insolvency or about day of variation of the action for declaration, and also from the moment of the conclusion of the voluntary settlement according to the procedure, established by this law.

(7) the Degree of jurisdiction considering insolvency matter based on the submitted application can take out motivated determination about cancellation of the taken providing measures before emergence of the circumstances specified in part (6), according to the procedure, established by the Code of civil procedure, except for case of organization of temporary management for the term of observation of the debtor.

Article 25. Status and powers of the interim manager

(1) Voided.

(The Creditors who submitted the action for declaration or the interim manager can give 2) at any time to the degree of jurisdiction considering insolvency matter, the statement for deprivation of the debtor of the right of management, referring to permanent losses from property of the debtor, or to lack of sales opportunity of the rational plan of activities of the company, and/or to evasion of the debtor from execution of the obligations.

(3) the Degree of jurisdiction considering insolvency matter can based on the statements and conditions specified in part (2), to dispose about complete or partial deprivation of governing bodies of the debtor of the right to exercise control of the debtor. In case of partial deprivation of the right of management the degree of jurisdiction considering insolvency matter directly specifies the cancelled rights and powers which can be performed further on behalf of the debtor only by the interim manager.

(The Degree of jurisdiction considering insolvency matter considers 4) provided by part (2) the statement within no more than 10 working days at meeting on which the interim manager, creditors who submitted the action for declaration and the debtor's representative are called. Absence of the parties subpoenaed in the procedure provided by the law does not interfere with consideration of the application.

(5) Fundamental obligations and the rights of the interim manager within this law are:

a) taking measures to ensuring storage of property of the debtor and his safety;

b) consideration of economic situation of the debtor and creation of the report on verification of presence of the bases for initiation of process of insolvency or for refusal in acceptance to consideration of the action for declaration;

c) supervision of transactions on property management of the debtor;

d) complete or respectively partial management of activities of the debtor according to this law, with observance of the instructions which are directly established by the degree of jurisdiction considering insolvency matter and conditions of implementation of the current payments at the expense of property of the debtor;

e) the urgent appeal to the degree of jurisdiction considering insolvency matter when ascertaining lack of things as a part of property of the debtor or their insufficiency for covering of the expenses connected with insolvency process;

f) verification of requirements and giving in need of claims on them, and also creation of the preliminary register of requirements;

g) collection of requirements, supervision of collection of the requirements concerning things from structure of property of the debtor or the sums of money transferred by the debtor before adoption of the action for declaration to consideration;

h) the conclusion of transactions, repayment of debts, the termination of the guarantee, refusal of property guarantees - on condition of approval of these actions by the degree of jurisdiction considering insolvency matter;

i) receipt of remuneration and expense recovery, confirmed with the degree of jurisdiction considering insolvency matter, suffered by the interim manager when implementing the activities;

j) requesting and free obtaining from participants of process, other persons, irrespective of type of property and form of business, necessary data and explanations for execution of the powers, and also requesting and obtaining from the debtor of information on its income and the property belonging to it on the property rights including which is in joint equity property;

k) use of access to service premises of the debtor and studying of the documents which are in them;

l) the appeal to the degree of jurisdiction considering insolvency matter with request concerning decision making about participation of law enforcement agencies performed by its obligations;

m) the appeal to the degree of jurisdiction considering insolvency matter with any question requiring acceptance by it the solution.

(5-1) Observation performed by the interim manager according to part provisions (1) Article 23 and this Article, in conditions when the debtor is not deprived of the right of management, consists in the continuous analysis of activities of the debtor and preliminary, after check of their feasibility, approval of the following transactions:

a) payments from bank accounts and from cash desk of the debtor, approved everyone or on the basis of general instructions for implementation of payments;

b) the conclusion of new agreements or change of conditions of earlier signed agreements;

c) abandonment of claim, recognition of the claim or the conclusion of the voluntary settlement on cases with participation of the debtor;

d) repayment of requirements by other, than execution, way;

e) reducing number or staff of workers, change of the collective employment contract.

(6) Amount of remuneration of the interim manager is established by the degree of jurisdiction considering insolvency matter for the every month of implementation of activities fulfilled actually and documented in fixed amount which cannot be less minimum coefficient of animation, recommended for the establishment of official pay rates of the heads working at the companies in organizations and the organizations which do not use the wages system based on single scale of charges of compensation, increased by the minimum guaranteed salary size in the real sector at the companies in the organizations and the organizations having financial autonomy.

(7) For the purpose of implementation of the powers the interim manager can hire specialists. Appointment of specialists and the amount of their remuneration are subject to approval by the degree of jurisdiction considering insolvency matter, except as specified in which it is determined that remuneration will be paid for the account of the interim manager or creditor who submitted the action for declaration.

(8) Powers of the interim manager stop from the moment of appointment as the degree of jurisdiction considering insolvency matter, the insolvency/liquidator managing process or from the moment of action for declaration variation in case of lack of the basis for insolvency.

Article 26. Notification on application of measures of providing

(1) In the determination about adoption of the action for declaration to consideration the degree of jurisdiction considering insolvency matter makes the order to the interim manager without delay to notify on application of measures of providing all public registers, including the state tax register, the state register of legal entities, the state register of individual entrepreneurs, the real estate register, the register of pledges of personal estate, the central depositary or (if it is known) registration society which keeps the register of owners of securities of the debtor joint-stock company, banks, customs authorities, postal departments, railway stations, port and customs warehouses, other places for warehousing located near the location of the debtor, its branches or representations for the purpose of the termination of any transactions with property of the debtor with the requirement at the same time to them to transfer correspondence of the debtor and any other messages which arrived in its address to the interim manager.

(2) Not later than within 10 days from the date of the appointment the interim manager shall send the notification to all creditors established based on the documents of financial accounting submitted by the debtor according to part (3) Articles 27, for presentation of the indisputable and subject to execution requirements to property of the debtor and representation of response to the action for declaration.

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