Lightweight Bankruptcy

Ready for discussion in the parliament is the draft amendment to the law of Azerbaijan Republic "On bankruptcy and insolvency" developed by the Ministry of Economy and Industry from May 23 of last year (the last day of the adoption of the proposals).

Under the amendments to Article 9, in a week (currently in 2 weeks) after the appointment of the day of the court session the applicant shall place in the local media an announcement, which should specify the name and address of the debtor, as well as data about the name of the court of first instance and the start of the trial.

The project foresees the reduction of the period (amendment to Article 13) of the meeting of creditors after declaring the company bankrupt by the court from 30 to 15 days.

Amendments to Article 25 provide that an auction to sell the debtor's assets must be held within 30 days. The purchaser of these assets should fully pay for them within 7 days (today - 14 days).

According to the amendments to Article 46, the trustee of the debtor within 60 days is to receive claims from creditors and within 7 days make an inventory of requirements (currently 28 days) and for 3 days it must present the register for the approval of the court (currently - 7 days).

The law "On Bankruptcy and Insolvency" operates in Azerbaijan since 1997. Currently, however, many international organizations have recommended the local government to revise articles of the law. --17D-