Declaring bankruptcy and initiating bankruptcy proceedings

Attention! The Law and Law Law Company draws your attention to the fact that this document is basic and does not always meet the requirements of a specific situation. Our lawyers are ready to assist you in drafting any legal document that suits your situation. For more information, please contact a Lawyer/Lawyer by phone; +7 (708) 971-78-58; +7 (727) 971-78-58. 

 

 statement

on declaring bankruptcy and initiating bankruptcy proceedings

LLP "........." ( hereinafter referred to as the Debtor) was registered with the Ministry of Justice of the Republic of Kazakhstan on 14.12.15. Type of activity retail sale of computers, peripheral equipment and software in specialized stores.

Justification of the inability to satisfy creditors' claims The main activity since 2016 has been the sale of software developed by a foreign company Autodesk, Inc. for a commission fee. According to Article 400 of the Tax Code of the Republic of Kazakhstan, a taxpayer does not have the right to offset VAT for a non-resident until it is fully paid, and also according to Article 645 of the Tax Code of the Republic of Kazakhstan, he must pay VAT for a non-resident at his own expense. The debtor did not provide in the contract with a foreign counterparty for the reimbursement of these taxes by a non-resident and had to incur significant losses because He paid VAT and CPN from his own funds. As a result, the Debtor incurred a debt on CPN and VAT for a non-resident. With the occurrence of tax arrears, expenditure operations on the cash register and all current accounts of the Debtor were suspended. This completely eliminated the possibility of restoring solvency. Tax liabilities were formed as a result of the issuance of a tax notice on repayment of tax arrears No. 1400086662 dated 02.26.19.

Declaring bankruptcy and initiating bankruptcy proceedings

As of the date of filing the application, the Debtor's tax arrears amount to 100,889 thousand tenge, of which VAT arrears amount to 20,387 thousand tenge, VAT arrears for non-residents amount to 23,748 thousand tenge, CPN arrears amount to 56,754 thousand tenge, according to Appendix No. 1 to this application. Due to the arrests of current accounts and the inability to continue business activities, the Debtor was unable to repay the debt owed to the software supplier Autodesk, Inc., in the amount of KZT 18,986 thousand. At the moment, all partnerships have been severed by the foreign counterparty, and their restoration seems impossible even if the debt is repaid. Total accounts payable as of the application date: 119,875 thousand tenge.

There is no information about his property, which is encumbered by collateral, which is in property lease (lease) and (or) leasing. There is no money in all current accounts, there is no cash at the cash desk, account numbers and bank locations are indicated in Appendix No. 2 to this application. The debtor has no accounts receivable. There are no obligations whose due date has not arrived. The Debtor's activity does not belong to the sphere of natural monopolies. The debtor is not a market entity that occupies a dominant (monopoly) position in the commodity market. There are no lawsuits against the Debtor accepted for production by the courts.  Information about obligations that are not due is not available.

Attempts to restore solvency on 16.10.19, the Debtor sent applications to all 27 second-tier banks in Kazakhstan requesting a credit line to repay current debts and resume business activities. For more than a month, the Debtor also sent additional documents, applications, questionnaires, etc. to banks upon incoming requests, however, after studying the documentation, all interested second-tier banks refused to lend. The main argument is that the bank's policy does not provide for the possibility of lending for the purpose of paying off taxes and other payables, lending is impossible with the available financial reporting indicators for the last 3 years. Also on 16.10.19, the debtor sent a letter to a major creditor, Autodesk, about the possibility of continuing partnerships between the companies. A response to this letter has not been provided. The debtor sent an application to the Department of Internal Affairs in Almaly district. Almaty with a request to consider the possibility of granting a deferral/installment payment of the tax obligation. On 30.10.19, the Debtor received an answer that the restructuring of tax arrears is possible only if a pledge is provided in an amount not lower than the amount of the Debtor's tax arrears. Unfortunately, the founder and the interested parties do not own the property of the required value. The repeated application also failed.

Thus, the Debtor has exhausted all possible ways to restore his solvency and continue his business activities. On 08/07/20, the debtor was unreasonably denied a bankruptcy claim, citing the fact that full information about the company's expenses was not provided, thus, according to the court's decision, the Debtor's stable insolvency was not established by the court. The debtor filed an appeal and cassation appeal. In order to exclude unjustified refusal, we attach a transcript of income and expenses for 2016-2021. to this application, which was previously provided to the interim manager. Calculation of stable insolvency According to paragraph 1 of Article 5 of the Law of the Republic of Kazakhstan "On Rehabilitation and Bankruptcy" it is established that "The basis for the debtor's application to the court for declaring him bankrupt and liquidation with the initiation of bankruptcy proceedings is his stable insolvency. Insolvency is sustainable if the debtor's obligations exceed the value of his property on the date of filing the application to the court and at the beginning of the year in which the application was filed, as well as at the beginning of the year preceding the year of filing the application, if the application was filed by the debtor in the first quarter of the calendar year." As of the date of filing this application, the total amount of the Debtor's obligations is 119,875 thousand tenge. There are no assets (property).

Declaring bankruptcy and initiating bankruptcy proceedings

As of 01.01.21, the total amount of the Debtor's obligations amounted to 112,698 thousand tenge. There are no assets (property). The debtor has concluded an agreement on the exercise of the powers of the interim manager with ....., IIN ....... Based on the above, guided by paragraphs 1 of art. 5 and art. 40-42 of the Law of the Republic of Kazakhstan "On Rehabilitation and Bankruptcy", WE ASK the COURT to recognize LLP "...." BIN 1.......... bankrupt and initiate bankruptcy proceedings in this regard. Director of CAD SYSTEMS LLP ...... A.S. List of attached documents of LLP "........":

Receipt of payment of the state fee;

EGOV registration card confirming the referral to the authorized body;

Appendix No. 1 List of debtors and creditors with indication of IIN/BIN, full name/full name, address, amount and date of debt formation;

Appendix No. 2 Information about account numbers and location of banks;

Power of attorney for the representative, extract from the PSC, identity card of the representative;

The decision of the sole participant to file for bankruptcy in court;

Certificate of stable insolvency;

Calculation of sustainable insolvency;

Financial statements and an explanatory note to it as of the application date;

Financial statements and explanatory note for the beginning of the year (01.01.2021);

Appendix No. 3 Breakdown of income and expenses for 2016-2021;

Copies of the constituent documents;

Certificate of registered legal entity;

Certificate of absence of branches and representative offices of a legal entity;

Certificate of absence of a legal entity's participation in other legal entities;

Certificate of absence of immovable property;

Notifications of tax debt repayment;

Information about tax arrears from the website of the SRC of the Ministry of Finance of the Republic of Kazakhstan;

Orders to suspend spending operations;

Decisions on restrictions on the disposal of property;

Application to the UGD for restructuring with refusal;

A letter to Autodesk with a postal receipt for sending;

Rejection letters from banks and shipping receipts;

A copy of the agreement on the exercise of the powers of the temporary administrator concluded between the debtor and the person authorized to carry out the activities of the administrator.

Director of CAD SYSTEMS LLP … 

Attention!   

       Law and Law Law Law draws your attention to the fact that this document is basic and does not always meet the requirements of a particular situation. Our lawyers are ready to assist you in legal advice, drawing up any legal document suitable for your situation.  

 For more information,  please contact a Lawyer / Attorney by phone: +7 (708) 971-78-58; +7 (700) 978 5755, +7 (700) 978 5085. 

Attorney at Law Almaty Lawyer Legal Services Legal Advice Civil Criminal Administrative Cases Disputes Protection Arbitration Law Firm Kazakhstan Law Office  Court Cases