Article 28-3. Agreement on Debt Restructuring of the Rehabilitation and Bankruptcy Act

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1. Within two months from the date of entry into force of the court's decision on the application of the debt restructuring procedure, the debtor is obliged to conclude an agreement on debt restructuring with all creditors.

2. An agreement on debt restructuring must contain provisions on the terms of the agreement, the procedure, methods and deadlines for fulfilling the debtor's obligations to the creditor (creditors).

The debt restructuring agreement is concluded for a period of no more than three years.

2-1. If, when concluding an agreement on debt restructuring, one of the creditors is a government agency, an agreement on debt restructuring may be concluded on the terms of installment repayment of debt owed to such a government agency for a period of no more than three years from the date of approval of the agreement.

Tax arrears are repaid subject to compliance with the requirements of the first part of this paragraph, secured by the property of the debtor and (or) a third party and (or) a bank guarantee.

The pledged property must be liquid, insured against loss or damage, and its market value must not be less than the amount of tax arrears. They cannot be collateral items:

1) life support facilities;

2) electric, thermal and other types of energy;

3) seized property;

4) property subject to restrictions imposed by state authorities;

5) property encumbered by the rights of third parties;

6) perishable raw materials, food.

3. It is allowed to participate in the agreement on debt restructuring of third parties who assume the rights and obligations stipulated by the agreement on debt restructuring.

4. An agreement on debt restructuring may be concluded on the terms:

1) postponement and (or) installment payment of the debtor's obligations;

2) assignment of the debtor's claim rights;

3) full or partial debt forgiveness;

4) write-offs of penalties (penalties, fines);

5) reducing the amount of remuneration for loans received;

6) satisfaction of the creditor's (creditors') claims in other ways that do not contradict the legislation of the Republic of Kazakhstan.

5. The agreement on debt restructuring is drawn up in writing in Kazakh and Russian and signed by the debtor individual entrepreneur, the owner of the property (authorized by him), the founder (participant) of the debtor legal entity and each creditor.

If the creditor does not agree with the terms of the agreement, such an agreement cannot be concluded.

If the agreement is not concluded, the debt restructuring procedure is considered completed and the consequences that have occurred in accordance with:

1) subparagraph 1) of Article 28-2 of this Law, – from the date of the court's decision on the application of the debt restructuring procedure;

2) by subitems 2) and 3) of Article 28-2 of this Law, – from the date of expiry of the term for concluding an agreement on debt restructuring established by paragraph 1 of this Article.

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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