The Finance Ministry has finalized a draft decree on the application of the Bankruptcy Law to enterprises operating in the domain of insurance, securities or finance.
This draft decree, which consists of five chapters with 28 articles, targets insurance enterprises set up and operating under the Law on Insurance Business; securities enterprises, excluding securities investment funds, set up and operating under the Securities Law; and financial service-providing enterprises set up under the Finance Ministry’s licenses or decisions or operating under the Finance Ministry’s state management, occupying an important position in the national economy and being included in a list elaborated and announced annually by the Finance Minister.
Bankruptcy procedures applicable to these enterprises would involve four steps, including submission of applications and opening of bankruptcy procedures; restoration of business activities; property and debt liquidation; and bankruptcy declaration.
Persons allowed to submit applications for opening of bankruptcy procedures for an enterprise include its creditors with unsecured debts or partially secured debts, its employees, owners, shareholders, partnership members, and lawful representatives.
However, applications for opening of bankruptcy procedures would be rejected if submitters fail to pay in advance bankruptcy charges within the prescribed time limit, submit applications for selfish purposes or commit fraudulence. In addition, the court would also refuse to open bankruptcy procedures if the enterprise is able to prove that it does not fall into bankruptcy.