Alexander Korshunov, “We preserve the assets of enterprises for the payment of compensation to employees by reducing the timeframe for the bankruptcy procedure”

The Supreme Council of the Pridnestrovian Moldavian Republic adopted in the second final reading a package of legislations that optimize the process of bankruptcy of enterprises and organizations. Amendments have been made to the laws “On Insolvency (Bankruptcy), “On State Registration of Rights to Real Estate and Transactions Therewith”, “On the Fundamentals of the Tax System in the PMR” and the Criminal Code of the Pridnestrovian Moldavian Republic.

Chairman of the Supreme Council of the Pridnestrovian Moldavian Republic Alexander Korshunov, who is one of the authors of the legislations, stressed that the purpose of the changes is the effective implementation of the institution of bankruptcy, so that creditors of the first and second stages (those who were injured at work and employees of the enterprise / organization) could receive the social payments required by law.

According to the adopted amendments to the laws, the bankruptcy process can last no more than 1 year, and the Arbitration Court will be able to extend it for a maximum of another 1 year. This will allow you to quickly sell the assets that the company owned before going into bankruptcy, and pay off the debts on wages and social benefits to employees of enterprises and organizations. The assets of a bankrupt enterprise are buildings, structures, warehouses, finished products, raw materials, equipment, and so on.

The bankruptcy legislation is now introducing the institution of fictitious bankruptcy, which was not previously provided for and regulated by law. The criteria for recognizing fictitious bankruptcy are also prescribed, the Criminal Code will provide for fines and even imprisonment for such actions against economic agents. New norms in the laws “On Insolvency (Bankruptcy), “On State Registration of Rights to Real Estate and Transactions with it”, “On the Fundamentals of the Tax System in the Pridnestrovian Moldavian Republic” are designed to increase the efficiency of the work of arbitration managers, to determine the procedure for managing property in the event of transfer of the debtor’s property to state (municipal) property in the framework of the insolvency procedure (bankruptcy, a mechanism that implements economic measures to prevent bankruptcy, toughening for crimes in the field of bankruptcy, the introduction of a simplified procedure for processing documents for the property of a legal entity declared insolvent (bankrupt).

23 enterprises and organizations have been in bankruptcy for many years in Pridnestrovie.