Bankruptcy of the company

According to Federal Law № 127-ФЗ of October, 26th, 2002 «About an insolvency (bankruptcy)» (further the Law) the concept an insolvency (bankruptcy) is defined as «inability of the debtor recognized in arbitration court to satisfy completely the requirements of creditors under liabilities and (or) to execute a duty on obligatory payments». The legal body is considered incapable to satisfy requirements of creditors under liabilities and (or) to execute a duty on obligatory payments if corresponding obligations and (or) a duty were not executed within three months from date when they had to be executed and make the sum not less than 100.000 roubles. Bankruptcy proceeding is raised by a filing of application in arbitration court in the location of the debtor - the legal person. Applicants can be: the debtor the competitive creditor the authorized bodies Key figure of bankruptcy should be a member of one of self-regulated organizations of arbitration managers and also should have a contract of obligatory insurance of liability. The general term «Arbitration manager » means four kinds of the figures functioning at different stages of bankruptcy - temporary manager, administrative manager, external manager and official receiver. Bankruptcy procedure consists of several stages: Procedure of Supervision starts from the moment of acceptance by Arbitration court of the statement about recognition of the debtor to be a bankrupt. At this stage temporary manager is appointed, whose main duty is the analysis of financial situation of the debtor for the purpose to determine a cost of property and its comparison to the sum of costs, finding of creditors, determining of their requirements and revealing of prospect of financial improvement of the debtor. Temporary manager executes the duties till the appointment of external manager or official receiver whose duties he can execute himself. Procedure of financial improvement is applied to the debtor for restoration of the solvency and repayment of debts to creditors according to the schedule of repayment of debts approved by arbitration court. At this stage arbitration court approves the administrative manager who fulfils the duties up to the termination of financial improvement procedure. Duties of the administrative manager are as follows: keeping of the register of requirements of creditors, control over timely and full execution of requirements of creditors by the debtor, general control over a course of financial improvement. Procedure of financial improvement can last as long as two years maximum. External management - bankruptcy procedure applied to the debtor for restoration of the solvency. At this stage the head of the organization is discharged of his post and the external managing director is introduced. This procedure can also last two years maximum. Following the results of this procedure the external manager represents the report to the meeting of creditors. If solvency is reestablished, clearing off with creditors is carried out. The external manager fulfils the duties until the new director of the organization is elected, in case of repayment of debts of creditors, or appointment of the official receiver in case of recognition of the debtor to be a bankrupt and starting the bankruptcy proceedings. Bankruptcy proceedings is applied in case of recognition of the debtor as a bankrupt, with the view of proportional satisfaction of creditors’ requirements. Powers on organization management pass to the official receiver who carries out inventory and an estimation of property of the debtor and pays off to creditors in sequence established by the law. The agreement of lawsuit can be concluded between the debtor and creditors at any stage of proceeding of bankruptcy at arbitration court. The agreement of lawsuit consists in writing between the debtor, his competitive creditors and the authorized bodies and contains conditions on the order and dates of discharge of obligations of the debtor. The agreement of lawsuit is approved by arbitration court. At approval of the agreement of lawsuit the arbitration court issues a judicial definition about approval of the agreement of lawsuit where termination of bankruptcy proceedings is specified. After consideration by arbitration court of the report of the official receiver on the results of bankruptcy proceedings, the arbitration court issues a judicial definition about termination of bankruptcy proceedings, as well as in case of repayment of debts of creditors. The official receiver after thirty days, but not later than sixty days from the date of reception of arbitration court definition about termination of bankruptcy proceedings should present a specified definition to the body on state registration of legal bodies. Arbitration court definition on termination of bankruptcy proceedings is the basis for entry about liquidation of the debtor in the uniform state register of legal bodies. Simplified bankruptcy procedure This bankruptcy procedure is applied when it was found in the course of liquidation that legal person concerning whom a decision on liquidation was taken does not have enough means to satisfy the requirements of creditors. The liquidating commission (liquidator) has to address the Arbitration court with the statement on recognition of such organization as the bankrupt. The simplified bankruptcy procedure starts in an order provided by item 224-226 ФЗ № 127-ФЗ of 26.10.2002 «About an insolvency (bankruptcy)». The procedure of bankruptcy is applied to such categories of debtors as the liquidated organizations and the absent organizations because their further existence is not supposed, then, accordingly, no any remedial measures are taken. The arbitration court makes a decision on a recognition of the legal person the bankrupt and starts bankruptcy procedure, affirms a nominee of the official receiver whose duties include inventory, collection of receivables, satisfaction of requirements of creditors, closing of accounts. Based on the report of the official receiver the Arbitration court makes a decision about termination of bankruptcy proceedings, and from this decision the registering body excludes the organization from the Uniform state register of legal bodies. The given procedure can take about six months. The documents necessary for bankruptcy procedure ОГРН Certificate INN Certificate All Certificates on changes if any Constituent documents with all registered changes Minutes/decision on director appointment Notice from State Committee on statistics Accounting balance for last accounting period Copies of passports of participants, director and chief accountant of the organization Copies of notices from Funds Bank Data where the organization account is open Seal Extract from ЕГРЮЛ Accounting balances and reports for three years Data on branches and the isolated divisions if any Inquiries on debts in the budget and off-budget funds