In recent years, many companies in Kazakhstan are experiencing shrinking asset valuesand increasing debt burdens. Effectively dealing with these issues requires guidance from lawyers who can assist with debt restructuring, insolvency and funding challenges.
Before insolvency proceedings have been initiated against a Kazakh debtor, a Kazakh borrower will normally seek one or a combination of concessions from lenders, depending mainly on their current and projected cash flows. These may include, for example, temporaryrelief from making payments; a postponement of the maturity date; other changes in the payment schedule;forgiveness of part of the indebtedness; debt for equity swaps; waiver of breaches of covenant; releases from certain financial or other covenants; standstill provisions, i.e., creditors’ agreement not to exercise certain rights or remedies; and provision of additional financing.
The Law of the Republic of Kazakhstan “On Rehabilitation and Bankruptcy” No. 176-V ЗРК dated 7 March 2014 (the “Bankruptcy Law”) provides for the following three insolvency regimes that may be applied to a Kazakh insolvent debtor if out-of-court workout did not work:
1. accelerated rehabilitation;
2. rehabilitation; and
Accelerated rehabilitation and rehabilitation are intended to rescue the debtor. A final liquidation (i.e., bankruptcy) guillotines the debtor.
Accelerated rehabilitation can be initiated by the debtor in the court proceeding provided that no rehabilitation or bankruptcy proceeding has been initiated against the debtor and the debtor is insolvent or will not be able to meet his or her monetary obligations on the due date within the next 12 months. Under the Bankruptcy Law, the debtor is insolvent if one or more of the following conditions are met: a) non-payment under health or life damage obligations, obligations to its employees, social insurance and pension payments, payments under copyright agreements within three months after they became due for the amount of 100 so-called monthly calculated indexes (approximately US$580); b) non-payment under tax and other budget obligations within four months after they became due for the amount of 150 monthly calculated indexes (approximately US$880); c) non-payment by a debtor – legal entity under any other obligations within three months after they became due for the total amount of 1,000 monthly calculated indexes (approximately US$5,900). Upon introduction of accelerated rehabilitation by the court, the following main legal implications arise:
1. the debtor may not use and realise its property except in the course of regular commercial operations, if provided by the rehabilitation plan or upon consent of the affected creditors;
2. a stay of enforcement of court decisions or arbitration awards issued earlier upon claims of affected creditors;
3. the affected creditors cannot file for bankruptcy of the debtor; and
4. withdrawal of money from the debtor’s account and foreclosure of the debtor’s property is prohibited.
Rehabilitation may be initiated in the court proceeding by either the debtor itself or its creditors. The debtor may file for rehabilitation if he or she is either insolvent or unable to meet his or her monetary obligations on the due date within the next 12 months. Creditors may file for rehabilitation if the debtor is insolvent. Unlike accelerated rehabilitation, within a rehabilitation procedure creditors may decide to deprive existing shareholders and pass management over the debtor to a specially appointed rehabilitation manager. The legal implications of the introduction of rehabilitation by the court are generally the same as for the accelerated rehabilitation discussed above.
Bankruptcy may be initiated in the court proceeding by the debtor itself, creditors, the prosecutor, the rehabilitation manager, or if, in the course of rehabilitation, it turns out that rehabilitation is not possible, the state body responsible for tax and other payments to the budget. Upon resolution of the court on the bankruptcy of the debtor, the bankruptcy manager realises the debtor’s property through public auction and satisfies the claims of the creditors included on the register of creditors’ claims in the prescribed by law order of priority (e.g. secured creditors are second in line of priority).
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12th Azerbaijan International Agriculture Exhibition (Caspian-Agro 2018) / 24th Azerbaijan International Food Industry Exhibition (WorldFood Azerbaijan 2018) was held on 16-18 May 2018 and was attended by Mr. Emil Bashirov the Lawyer, GRATA Azerbaijan.
AmCham Members May Luncheon was held on 3 May 2018 and was attended by Mr. Emil Bashirov the Lawyer, GRATA Azerbaijan.
GRATA International became a sponsor of the SOCAR III International Caspian and Central Asia Downstream. The event was held on 23-26 April 2018 and was attended by Mr. Emil Bashirov the Lawyer, GRATA International Azerbaijan.
"Doing Business in Azerbaijan” Presentation (Center for Analysis of Economic Reforms and Communication) was held on 26th April 2018 and was attended by Mr. Emil Bashirov the Lawyer, GRATA International Law Firm (Office in the Republic of Azerbaijan).
This article is to discuss legal issues that may arise under Polish civil law in connection with the conclusion of a preliminary sale agreement and payment by the purchaser prior to execution of the final sale agreement of the amount which may be classified, depending on the parties’ decision, either as an earnest money (in Polish: zadatek) or as an advance amount (in Polish: zaliczka).
As of 30 April 2018, a package of five legal acts adopted on 6 March 2018 aimed at facilitating business activity entered into force in Poland.
Under the Polish law, a foreign entrepreneur may, based on the reciprocity principle, set up its branch in the Republic of Poland. The scope of the branch's activity may include only the activity that is performed by the entrepreneur in the country of its incorporation.
In generally, the relationship between a landlord and a tenant is governed by a contract. That contract is referred to as the lease. A lease is an agreement between the landlord and the tenant in which the landlord agrees to allow the tenant to occupy a building or a piece of property owned by the landlord generally in return for the payment of periodic rent. Any issues relating to landlord/tenant law must initially be looked at in terms of what the lease calls for as to the respective rights and obligations of two parties.
New Law on National Payment System, dated 31 May 2017, shall become effective from 1 January 2018. The importance of the new law is an integrated payment system launch between the Central Bank, commercial banks, legal entities, other financial institutions and individual customers. As result of the law enactment, the Central Bank will be able to control all payment transactions of all participants of Mongolia financial market.
As the Central Asia’s largest and richest country, Kazakhstan has a lot of natural advantages for the development of renewables, including 3,000 hours of solar radiation a year and the average annual wind speed of nine meters per second in some parts of the country.
GRATA International has been recognised for its Deal of the Year 2017 by China Business Law Journal.
The insurance market in Kazakhstan is mainly regulated by two legal acts, namely, the Civil Code of the Republic of Kazakhstan dated 27 December 1994 (the “Civil Code”)and the Law of the Republic of Kazakhstan “On Insurance Activity” No.126-II dated 18 December 2000 (the “Insurance Law”).
Gulnur Nurkeyeva gave a speech on "The Second Global Law Firm Cooperation Forum and Lawyers' Private Advisory Board Conference" in Beijing on May 9, 2018 hostet by Beijing DHH Law firm.
On 23-25 April, the English Law Summit was held in Astana and Almaty, where GRATA International Law Firm took an active part.
The President of Kazakhstan, Nursultan Nazarbayev, signed, on 28 December 2017, the Law No. 128-VI on Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Information and Communication (‘the Law’). Marina Kahiani and Lola Abdukhalykova, Partner and Associate at GRATA International, provide an analysis of the obligations under the Law, including user identification, data retention and data localisation provisions, applicable for telecommunications operators and website operators.
Kyrgyz law identifies insurance activity as an activity of organisations that have a license to provide services to individuals and legal entities for premium services, the subject of which are contractual specific obligations of the insurer in the event of an unknown event, with the distribution of risk among a large number of persons exposed to such a risk, calculated on the basis of the principle calculation of large numbers.
The Law on Advertising (2002) and Law on Medicines and Medical Devices (2010) are main laws to regulate advertising of medicines in Mongolia.
GRATA International law firm was appointed as a Member of the AIFC Court (the "Court") Users' Commitee and the International Arbitration Center (the "IAC") Users' Committee.
The rapid development of the energy sector in the Republic of Kazakhstan forced the state to actively focus on creating conditions for the use of renewable energy sources. EXPO-2017 have become an additional incentive for the development of renewable energy projects. However, the renewable energy sector is, relatively young in Kazakhstan and there are a number of issues that need to be discussed. Some of them we would like to discuss below.
As it is known, Kazakhstan adopted a new Code on Subsoil and Subsoil Use dated 27 December 2017 (“Code"), which comes into force on 30 June 2018.
On 19 April 2018, Yerbolat Yerkebulanov, partner of GRATA International (Subsoil Use Dept.) spoke on “Novelties in the Subsoil Code for Petroleum Subsoil Users”.”
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