Bankruptcy procedure: administration.

If the debtor's solvency is deemed to be restorable, it may decide to replace the debtor's management and introduce external management for a period of up to 18 months, which may be extended by a further six months. Upon the introduction of external management, all creditors' claims that were due prior to the date of the introduction of external management become subject to a moratorium. The external manager must draft an external management plan setting out measures designed to restore the debtor's solvency within a specified time period. The plan must be approved by the meeting of creditors.

The external manager may terminate those contracts of the debtor that prevent the restoration of its solvency and/or cause the debtor to incur losses. A contract of the debtor, including those concluded before introduction of the external management, may be annulled by court if the contract causes or can lead to losses for the debtor. Similarly, a deal may be considered void on the grounds that it puts a particular creditor(s) in a more favourable position than another.

While under external management, the debtor may issue new shares and may incorporate new open joint-stock companies by contributing the debtor's assets to such companies.

 

 

Share/Save
<