FAQ

Q: What does bankruptcy mean?

A: Bankruptcy is the insolvency of a debtor, recognized by a decision of the court considering economic cases, on declaring a debtor - a legal entity bankrupt and opening liquidation proceedings, on declaring a debtor - an individual entrepreneur bankrupt with the termination of business activities and the opening of liquidation proceedings production.

Q: What does competitive production mean?

A: Bankruptcy proceedings - the procedure applied to the debtor for the purpose of verification of presence (absence) of the bases for decision making about recognition of the debtor - the legal entity insolvent and introduction of sanitation or about recognition of the debtor - the legal entity the bankrupt and opening of liquidating production, about recognition of the debtor - the individual entrepreneur the bankrupt with the termination of business activity and opening of liquidating production, forming of the register of requirements of creditors, determinations of signs of deliberate bankruptcy, concealment of bankruptcy or preventing to carrying out settling with creditors. Bankruptcy proceedings are opened by the court considering economic cases within the framework of a case of economic insolvency (bankruptcy). The court conducting the bankruptcy case appoints an anti-recessionary manager to carry out Bankruptcy proceedings.

Q: What does liquidation proceedings mean?

A: Liquidation proceedings - procedure applied to a debtor declared bankrupt for the purpose of liquidating the debtor - a legal entity or terminating the activities of the debtor - an individual entrepreneur, selling the debtor's property and satisfying the maximum possible claims of creditors in accordance with the established priority.

Q: Who are the creditors?

A: Creditors are persons who have the right of claim against the debtor for monetary obligations, obligatory payments, obligations to pay wages and make other payments in accordance with labor legislation.

Q: What measures are taken to deal with bank bankruptcy?

A: In order to prevent bank bankruptcy, the following measures are taken:
improving the financial condition of the bank;
appointment of an interim administration to manage the bank;
bank reorganization.

Q: What is an interim administration?

A: The interim administration is a special management body of the bank, appointed by the National Bank of the Republic of Belarus in the manner prescribed by the Law of the Republic of Belarus dated December 13, 2022 № 227-Z "On insolvency resolution" and regulatory legal acts of the National Bank of the Republic of Belarus. The procedure for the activities of the interim administration is established by the regulatory legal acts of the National Bank of the Republic of Belarus.

Q: In what forms is bank reorganization carried out?

A: Reorganization of the bank is carried out in the form of merger, accession, as well as in the manner established by Article 101 of the Banking Code of the Republic of Belarus.

Q: Does the introduction of a temporary administration to manage the bank or the initiation of economic insolvency (bankruptcy) procedures against the bank mean the termination of obligations on the part of the bank's debtors (borrowers and etc.)?

A: No, it doesn't mean that. The debtor is obliged to fulfill his obligations. The head of the interim administration or the anti-recessionary manager is obliged to take measures provided for by law aimed at searching, identifying and returning the debtor’s property (including funds), including those held by third parties.

Q: Is the satisfaction of the bank's creditors' claims for monetary obligations suspended upon the appointment of a temporary administration in the bank?

A: In case of suspension of the powers of the executive bodies of the bank and in the presence of grounds established by law, the National Bank of the Republic of Belarus has the right to suspend the satisfaction of the claims of the bank’s creditors for monetary obligations for a period of no more than three months.

Q: Is satisfaction of the bank's creditors' claims for payment obligations suspended when bankruptcy proceedings are opened against the bank?

A: From the day the court considering economic cases makes a ruling on the opening of bankruptcy proceedings, a suspension of satisfaction of creditors' claims for monetary obligations arising before the opening of bankruptcy proceedings, obligations to pay obligatory payments of the debtor is introduced for the period until the completion of insolvency or bankruptcy proceedings, except in cases where the Law of the Republic Belarus dated December 13, 2022 No. 227-Z “On insolvency resolution” allows the satisfaction of creditors’ claims.

Q: What procedure and what deadlines are established for bank creditors to present their claims within the framework of bankruptcy proceedings?

A: Creditors have the right to present their claims to the debtor within two months from the date of posting in the Unified Register of information about the court’s issuance of one of the following rulings:
a ruling on accepting an application, initiating insolvency proceedings and opening bankruptcy proceedings, accepting an application, initiating bankruptcy proceedings and opening bankruptcy proceedings, or on opening bankruptcy proceedings entails the opening of bankruptcy proceedings against the debtor.
The creditor's claims in writing, together with documents allowing to establish the amount of these claims, are sent to the anti-recessionary manager at the debtor's postal address or other postal address specified in the Unified Register.

Q: In what order and priority are creditors' claims satisfied?

A: The procedure and priority for satisfying creditors' claims is regulated by Article 119 of the Law of the Republic of Belarus dated December 13, 2022 No. 227-Z "On insolvency resolution".

Q: Who represents the interests of all bank creditors in bankruptcy proceedings?

A: In the bankruptcy procedure, the meeting of creditors represents the interests of all creditors and carries out all actions in relation to the bank on behalf of the creditors.

Q: What is the main competence of the meeting of bank creditors?

A: The main competence of the meeting of creditors is to protect the claims of the bank’s creditors

Q: What is the procedure for convening a meeting of creditors?

A: A meeting of creditors is convened and held by the anti-recessionary manager on the initiative of the anti-recessionary manager, the court considering economic cases, at the request of a committee of creditors or creditors whose claims for monetary obligations, mandatory payments and (or) obligations to pay wages and make other payments in accordance with labor legislation amount to at least one third of the total amount of creditors' claims included in the register of creditors' claims, and the claims of creditors subject to satisfaction out of turn, specified in paragraph 1 of Article 197 of the Law of the Republic Belarus dated December 13, 2022 No. 227-Z “On insolvency resolution ”, the state body subordinate (composed) of which the debtor is or which manages the shares (shares in the authorized capital) of the debtor belonging to the Republic of Belarus or its administrative-territorial units, according to initiative of at least one third of the total number of creditors, as well as persons who filed a complaint against the decisions, actions (inaction) of the anti-recessionary manager in accordance with Article 58 of the Law of the Republic of Belarus of December 13, 2022 No. 227-Z “On insolvency resolution”.

Q: What is the procedure for convening the first meeting of creditors?

A: The manager determines the date, time and place of the first meeting of creditors, if this information is not determined by the court considering economic cases, places information about the first meeting of creditors in the Unified Register in accordance with Article 38 of the Law of the Republic of Belarus of December 13, 2022 No. 227-Z “On insolvency resolution”. The first meeting of creditors must take place within a period not exceeding 75 days from the date of commencement of bankruptcy proceedings against the debtor.
At the first meeting of creditors, the creditors present at it, whose claims are included in the register of creditors’ claims, as well as creditors whose claims are subject to satisfaction out of turn on the basis of paragraph 1 of Article 197 of the Law of the Republic of Belarus dated December 13, 2022 No. 227-Z “On insolvency resolution."

Q: What is the procedure for the formation of the bank's creditors' committee?

A: The decision on the formation of a creditors’ committee is made at the first meeting of creditors without fail if the total number of creditors of the debtor, whose claims are included in the register of creditors’ claims, and the creditors specified in paragraph 1 of Article 197 of the Law of the Republic of Belarus of December 13, 2022 No. 227-Z " On insolvency resolution " is at least 10.
The сreditors' сommittee includes creditors in an odd number, determined by the meeting of creditors, but not less than three and not more than seven creditors.
In this case, a representative of the debtor’s employees is included in the creditors’ committee without fail.
The сreditors' сommittee is convened and its meetings are held in the manner established by Article 64 of the Law of the Republic of Belarus dated December 13, 2022 No. 227-Z "On insolvency resolution " The election of members of the creditors' committee takes place in accordance with Article 68 of the Law of the Republic of Belarus dated December 13, 2022 No. 227-Z "On insolvency resolution "

The сreditors' сommittee has the right to make decisions:
on convening a meeting of creditors;
on a complaint against decisions, actions (inaction) of the anti-recessionary manager;
on recommendations to the meeting of creditors to consider issues of dishonest or improper performance of duties by the anti-recessionary manager;
on approval or refusal to approve transactions of the debtor made in accordance with paragraphs 3 and 5 of Article 77 and Article 105 of the Law of the Republic of Belarus of December 13, 2022 No. 227-Z “On insolvency resolution”;
on other issues referred to its competence by the meeting of creditors.
To carry out the functions assigned to it, the сreditors' сommittee has the right to:
require the anti-recessionary manager to provide information regarding the financial condition of the debtor and the insolvency or bankruptcy proceedings;
represent the interests of creditors whose claims are included in the register of creditors' claims, and creditors specified in paragraph 1 of Article 197 of the Law of the Republic of Belarus dated December 13, 2022 No. 227-Z "On insolvency resolution", at court considering economic cases hearings if such a decision is made by the meeting of creditors.

Q: What is the procedure for forming a bank creditors committee?

A: The creditors' committee has the right to make decisions:
on convening a meeting of creditors;
on a complaint against decisions, actions (inaction) of the manager;
on recommendations to the meeting of creditors to consider issues of dishonest or improper performance by the manager of his duties;
on approval or refusal to approve transactions of the debtor made in accordance with paragraphs 3 and 5 of Article 77 and Article 105 of the Law of the Republic of Belarus of December 13, 2022 No. 227-Z “On the Settlement of Insolvency”;
on other issues referred to its competence by the meeting of creditors.
To carry out the functions assigned to it, the Committee of Creditors has the right to:
require the manager to provide information regarding the financial condition of the debtor and the insolvency or bankruptcy proceedings;
represent the interests of creditors whose claims are included in the register of creditors' claims, and creditors specified in paragraph 1 of Article 197 of the Law of the Republic of Belarus dated December 13, 2022 No. 227-Z "On the Settlement of Insolvency", at court hearings if such a decision is made by the meeting of creditors.

Q: FAQ

A: The quotations and excerpts from regulatory legal acts presented on this page are an unofficial translation of such regulatory legal acts. The distribution (provision) of a legal act translated from the state language in which it was adopted (issued) was carried out with the mark “Unofficial translation”, set out in the language of translation in accordance with paragraph 14 of the Regulation on the Dissemination (Provision) of Legal Information, approved by Decree of the President of the Republic of Belarus dated December 30, 2010 No. 712 “On Improving the State System of Legal Information of the Republic of Belarus”.