Consequences of introducing the procedure for financial recovery of an enterprise
Posted: Sun Jan 19, 2025 9:56 am
The process of financial recovery of an enterprise leads all its participants to certain consequences. According to paragraph 1 of Article 81 of Federal Law No. 127-FZ, from the date when the court issues its ruling:
any measures taken to satisfy the claims of creditors are cancelled;
arrests and other restrictions on the debtor’s property are imposed only within the framework of the arbitration process;
the transfer of dividends and other payments on the defendant's securities cannot be carried out.
According to paragraph 2 of Article overseas chinese in worldwide data 84 of Federal Law No. 127-FZ, the debtor is obliged to cover debts to creditors during the recovery procedure according to the agreed schedule. The company's management bodies continue to operate and perform management functions, but at the same time must comply with certain restrictions, according to paragraph 1 of Article 82 of the aforementioned document. This means that without the consent of creditors (their meeting or committee), it is impossible to carry out transactions to issue loans, credits, or provide sureties or guarantees (paragraph 3 of Article 82).
Consequences of the introduction of the financial recovery procedure
Clause 3 of Article 83 of Federal Law No. 127-FZ states that the administrative manager must have the following priority functions during the company’s financial recovery procedure:
maintaining a register of creditors' claims;
control over the debtor's fulfillment of the specified obligations;
verification of the company's full compliance with the financial recovery plan and timely payment of payments according to the established schedule;
control over the transfer of funds for debts on time and in full;
studying the debtor's report on work in accordance with the repayment schedule, drawing up a reporting document, developing a corresponding conclusion and providing data to the creditors' meeting, etc.
According to paragraph 1 of Article 86, paragraph 1 of Article 88 of Federal Law No. 127-FZ, the company is obliged to submit a written report to the administrative manager no later than 30 days before the end of the established period of the enterprise recovery procedure. If the situation is such that all obligations were closed earlier, then such a document can be submitted ahead of schedule.
In accordance with paragraphs 3 and 5 of Article 88 of the law, the manager is obliged to study the report on the completion of financial recovery submitted to him, make his own conclusion on it, send it to the creditors and to the arbitration court. If there are no complaints about the work of the debtor or the manager, the court may terminate the bankruptcy case. Otherwise, a decision is made to appoint external management or to start bankruptcy proceedings, in accordance with paragraph 6 of Article 88 of Federal Law No. 127-FZ.
any measures taken to satisfy the claims of creditors are cancelled;
arrests and other restrictions on the debtor’s property are imposed only within the framework of the arbitration process;
the transfer of dividends and other payments on the defendant's securities cannot be carried out.
According to paragraph 2 of Article overseas chinese in worldwide data 84 of Federal Law No. 127-FZ, the debtor is obliged to cover debts to creditors during the recovery procedure according to the agreed schedule. The company's management bodies continue to operate and perform management functions, but at the same time must comply with certain restrictions, according to paragraph 1 of Article 82 of the aforementioned document. This means that without the consent of creditors (their meeting or committee), it is impossible to carry out transactions to issue loans, credits, or provide sureties or guarantees (paragraph 3 of Article 82).
Consequences of the introduction of the financial recovery procedure
Clause 3 of Article 83 of Federal Law No. 127-FZ states that the administrative manager must have the following priority functions during the company’s financial recovery procedure:
maintaining a register of creditors' claims;
control over the debtor's fulfillment of the specified obligations;
verification of the company's full compliance with the financial recovery plan and timely payment of payments according to the established schedule;
control over the transfer of funds for debts on time and in full;
studying the debtor's report on work in accordance with the repayment schedule, drawing up a reporting document, developing a corresponding conclusion and providing data to the creditors' meeting, etc.
According to paragraph 1 of Article 86, paragraph 1 of Article 88 of Federal Law No. 127-FZ, the company is obliged to submit a written report to the administrative manager no later than 30 days before the end of the established period of the enterprise recovery procedure. If the situation is such that all obligations were closed earlier, then such a document can be submitted ahead of schedule.
In accordance with paragraphs 3 and 5 of Article 88 of the law, the manager is obliged to study the report on the completion of financial recovery submitted to him, make his own conclusion on it, send it to the creditors and to the arbitration court. If there are no complaints about the work of the debtor or the manager, the court may terminate the bankruptcy case. Otherwise, a decision is made to appoint external management or to start bankruptcy proceedings, in accordance with paragraph 6 of Article 88 of Federal Law No. 127-FZ.