Article 104-1. Satisfaction of the claims of the mortgaged creditors by accepting the mortgaged property in kind of the Law on Rehabilitation and Bankruptcy

Home / Laws / Article 104-1. Satisfaction of the claims of the mortgaged creditors by accepting the mortgaged property in kind of the Law on Rehabilitation and Bankruptcy

1. The interim manager, no later than ten working days from the date of the court's ruling on the initiation of bankruptcy proceedings, sends an information message to the authorized body on the acceptance of price proposals for the assessment of mortgaged property for posting on the authorized body's Internet resource.

The authorized body is obliged to post the information message on its Internet resource within two working days from the date of receipt.

The bankruptcy trustee, within twenty working days from the date of his appointment, ensures that the mortgaged property is assessed by an appraiser selected by the first creditors' meeting.

2. The bankruptcy trustee, within two working days from the date of receipt of the results of the assessment of the pledged property, shall send them to the secured creditor by registered mail with a proposal to accept the pledged property in kind, indicating the amounts to be repaid by the secured creditor in accordance with paragraph 4 of this article.

2-1. An agent bank acting on behalf of and in the interests of the participants of the creditors' syndicate in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization is obliged to notify the participants of the creditors' syndicate of the received proposal from the bankruptcy trustee to accept the pledged property in kind.

3. The mortgaged creditor and (or) the agent bank acting on behalf of and in the interests of the participants of the syndicate of creditors in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, are obliged, no later than ten working days from the date of receipt of the proposal specified in paragraph 2 of this Article, to express in writing consent to the acceptance of the pledged property in kind or the abandonment of it.

The consent of the agent bank acting on behalf of and in the interests of the participants of the creditors' syndicate in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization is accompanied by the decision of the participants of the creditors' syndicate, whose share of financing under the syndicated loan agreement is collectively at least two thirds of the total financing.

4. If the mortgaged creditor agrees to accept the mortgaged property in kind, no later than one month from the date of sending a written notification to the bankruptcy trustee on accepting the mortgaged property in kind, prior to its acceptance, he must repay the administrative costs associated with the assessment and maintenance of the mortgaged property, as well as creditors' claims for remuneration included in the first stage of the register. creditors' claims, provided that there is no other property of the debtor to repay these claims.

Creditors' claims for remuneration are satisfied within the minimum wage established for the relevant financial year by the law on the Republican budget, for a period of no more than three months, but not exceeding fifteen percent of the estimated value of the mortgaged property.

If the consent to accept the pledged property in kind is expressed by an agent bank acting on behalf of and in the interests of the participants of the creditors' syndicate in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, administrative expenses related to the assessment and maintenance of the pledged property, as well as creditors' wage claims included in the the first stage of the register of creditors' claims, are subject to repayment within the time period provided for in part one of this paragraph., participants of the creditors' syndicate in proportion to the size of their claims secured by collateral in accordance with the syndicated loan agreement, prior to the acceptance of such property in kind.

5. The bankrupt manager, within five working days from the date of repayment of administrative expenses, as well as creditors' claims specified in paragraph 4 of this Article, shall transfer the pledged property to the secured creditor in order to satisfy his claims.

If the pledged property is the subject of securing obligations under the syndicated loan agreement, then such property is transferred to the participants of the creditors' syndicate in shared ownership in proportion to the size of their secured claims in accordance with the syndicated loan agreement.

6. If the estimated value of the pledged property is less the repaid creditors' claims specified in the second part of paragraph 4 of this Article:

more than the amount of the collateral creditor's claims – the difference is transferred by the collateral creditor and (or) the agent bank acting on behalf of and in the interests of the participants of the creditors' syndicate in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization to the bankrupt's estate within one month from the date of transfer of the pledged property to him;

less than the size of the collateral creditor's claims – the collateral creditor's claims in the amount of the difference are included in the register of creditors' claims and are subject to satisfaction as part of the fourth stage.

7. The claims of the secured creditor shall be satisfied in accordance with the procedure provided for in Article 103 of this Law in the following cases::

1) refusal of the mortgaged creditor and (or) the agent bank acting on behalf of and in the interests of the participants of the syndicate of creditors in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization from accepting the mortgaged property in kind;

2) failure by the secured creditor and (or) the agent bank acting on behalf of and in the interests of the participants of the creditors' syndicate in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization to respond to the bankruptcy trustee's proposal within the time period established by paragraph 3 of this Article.;

3) non-payment in full of administrative expenses and creditors' claims specified in paragraph 4 of this Article.

8. The mortgaged creditor and (or) the agent bank acting on behalf of and in the interests of the participants of the syndicate of creditors in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, are obliged to transfer to the bankruptcy administrator the title documents for the mortgaged property of the bankrupt within three working days from the date of occurrence of the cases provided for in paragraph 7 of this Article.

9. The procedure established by this article does not apply to:

1) creditors whose claims arose as a result of the receipt of a loan by a bankrupt administrator during the bankruptcy procedure;

2) creditors on digital financial assets secured by property collateral.

The Law of the Republic of Kazakhstan dated March 7, 2014 No. 176-V SAM.

This Law regulates public relations arising from the debtor's inability to satisfy creditors' claims in full, establishes the grounds for applying debt restructuring procedures, rehabilitation procedures and declaring the debtor bankrupt, liquidating the debtor without initiating bankruptcy proceedings, and also defines the procedure and conditions for their conduct.

President

Republic of Kazakhstan

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