Comments on article 353. Court approval of the restructuring plan of the Civil Procedure Code of the Republic of Kazakhstan
After the creditors approve the financial institution's restructuring plan, the financial institution is required to submit the restructuring plan for court approval. Together with the restructuring plan, the financial institution submits to the court the minutes of the creditors' meeting of the financial institution on approval of the restructuring plan of the financial institution in accordance with the procedure provided for by the legislation of the Republic of Kazakhstan.
Financial organization:
- within seven calendar days from the date of entry into force of the court's decision on restructuring, informs depositors, creditors and other clients about the restructuring by publishing an announcement in at least two periodicals distributed throughout the Republic of Kazakhstan, in Kazakh and Russian languages.;
- sends copies of the effective court decision on restructuring to correspondent banks no later than the day following the day of its receipt;- has the right to, from the date of entry into force of the court decision on the restructuring of the bank:
1) suspend the execution of purchase and sale agreements, barter, donation or other transactions on the alienation of the bank's property, the conclusion of loan agreements and other types of financing that carry credit risk;
2) suspend the fulfillment of the bank's obligations in whole or in part. Within the time limits stipulated by the court's decision on restructuring, the financial institution convenes a meeting of the bank's creditors, whose obligations are to be restructured, in order to negotiate with them and obtain approval of the restructuring plan.
The approval of the restructuring plan requires the consent of creditors, who account for at least two thirds of the bank's obligations to creditors, the obligations to which are expected to be restructured.
The bank's restructuring is carried out in respect of all the bank's obligations to creditors that are expected to be restructured in accordance with the restructuring plan, subject to approval of the restructuring plan by the bank's creditors.
The Bank, no later than the next business day after the creditors' approval of the restructuring plan, sends the restructuring plan approved by the creditors to the authorized body or notifies the authorized body of the impossibility of restructuring the bank if the approval of the bank's creditors is not received.
The authorized body has the right to request that the restructuring plan be finalized if the terms of the restructuring plan differ from the terms of the draft restructuring plan previously submitted by the bank to the authorized body. The Bank is obliged to take into account the comments and suggestions of the authorized body and resubmit to the authorized body the finalized restructuring plan approved by the bank's creditors.
After meeting the requirements stipulated by the Law "On Banks and Banking Activities in the Republic of Kazakhstan", a financial institution submits a restructuring plan to the court for approval.
The restructuring plan should contain the following information: the procedure and timing of the restructuring; the list of restructured assets and liabilities; activities carried out as part of the restructuring; expected financial results from the restructuring of assets and liabilities; restrictions on activities.
The restructuring plan of a bank that is a member of a banking conglomerate, in addition to the above information, should contain the expected results of the impact of the bank's restructuring on other members of the banking conglomerate.
An application for approval of a restructuring plan is considered at a court hearing in the framework of a restructuring case without initiating new proceedings.
Based on the results of the review, a judicial act is issued in the form of a ruling on approval of the restructuring plan or refusal to approve the restructuring plan.
LIBRARY OF THE SUPREME COURT OF THE REPUBLIC OF KAZAKHSTAN
Astana, 2016
UDC 347 (574)
By 63
ISBN 978-601-236-042-4
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