Amendments To The Insolvency Law

Original Language Title: Grozījumi Maksātnespējas likumā

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://www.vestnesis.lv/ta/id/193678

The Saeima has adopted and the President promulgated the following laws: the law of insolvency to make insolvency law (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 2007, no. 24) the following amendments: 1. Supplement article 19 to the seventh paragraph as follows: "(7) in the insolvency proceedings handed down contemporaneously with the legal protection process termination, the administrator shall continue to perform the duties of an administrator, who is appointed by the legal protection process."
2. Add to article 25, paragraph 3, after the words "the legal protection process" with the words "except for article 19 of this law in the seventh part of the event".
3. Express article 32 the first part as follows: "(1) the Company shall have the right to submit an application to the Court for redress of the initiation of the proceedings, if the solvency of the company is limited and if not less than three years is registered in the companies register of the relevant register and is submitted to the legal or statutory annual accounts for the last three years."
4. Article 33: Add to the first part of paragraph 3, after the word "interest" with the word "proportion";
to make the second and the third part as follows: "(2) the principal sum of the secured creditor or a percentage reduction or deletion is possible if agreed with the secured creditor.
(3) the tax claims of the principal sum, the amount of tax arrears and a reduction in the fine, pay taxes, or the extension of the tax debt, as well as current tax payment extension is possible if agreed with the tax administration (AP). "
5. Add to article 34 and the second paragraph of point 7.1 7.2 as follows: "all the 71) total amount due timed out after the legal protection process implementation deadline;
72) the company pledged property list, which requires the implementation of a process of redress; ".
6. Article 36, first paragraph: Add to paragraph 2 with the words "except for article 40 of this law in the cases referred to in the third subparagraph";
Add to part with 5, 6, 7 and 8 of the following: "5) penalty suppression;
6 percent increase), which exceed the legal interest, except when the Latvian Bank refinancing rate exceeds the statutory interest, because then the applicable Bank refinancing rate;
7) late (even if identified as liquidated damages) Suppression;
8) tax claim delay fee calculation. "
7. Article 37: Supplement to the fourth subparagraph following the words "or delete" with the words "as well as current tax payment extension";
to supplement the article with a fifth by the following: "(5) the legal protection process in the action plan may provide benefits according to the resources devoted to the people who grant funds to implement the plan. If the legal protection process is terminated and is declared at the legal person of the insolvency process, the resultant benefits remain valid and claims against debtor arising from the implementation of the plan of allocation shall be regarded as expenses of the insolvency proceedings. The benefit granted shall not interfere with the interests of the secured creditor. "
8. Article 38: make the third paragraph as follows: "(3) the implementation of a process of redress must receive consent from the still-secured creditors whose main claim as a whole constitutes more than half of the main claim amount.";
turn off the fourth part;
make the first sentence of the sixth paragraph the following wording: "the company, sending the harmonisation of all unsecured creditors the legal protection process of the action plan, at the same time it sends the administrator and creditors for an opinion on the feasibility of the implementation of the plan."
9. Article 40: turn off the second part;
to supplement the article with the third and fourth subparagraph by the following: "(3) the secured creditor may request the commercial sale of the pledged property, if this law article 36, first paragraph, the prohibition referred to in paragraph 2 affects his interests and the sale of pledged property does not significantly affect the commercial legal protection process of the implementation of the measures.
(4) decision to allow the commercial sale of pledged property accepts the Court proposed the legal protection process. "
10. Replace article 42, the words "year" with the words "two years".
11. Article 45: turn off the second part of paragraph 1;
Replace paragraph 2 of the second paragraph, the words "supported the two-thirds" with the words "supported more than half the unsecured";
to make the third part of the introductory paragraph as follows: "(3) the Administrator shall submit the application for insolvency proceedings in the Court, while asking for an end to the legal protection process, if:";
Add to article 4.1 part as follows: "(41) company with a court application for insolvency proceedings, while asking for an end to the legal protection process, if it fails to settle the legal protection process of the action plan commitments (article 50).";
turn off the fifth and seventh.
12. in article 46: Add to the article with the second and third subparagraphs by the following: "(2) If the legal protection process of the action plan in accordance with the procedure laid down in this Act and the term is not supported over half of unsecured creditors and legal protection proceedings are terminated, then this law, the prohibition referred to in article 36 are canceled and stopped the penalty, interest and late payment for outstanding commitments is calculated in full. In this case also is being restored by the legal protection process of the initiation of the suspended proceedings and enforcement proceedings.
(3) If, when the legal protection process, legal persons are declared insolvency, suspended the proceedings and enforcement proceedings is not restored and this law, article 36, first paragraph, and 2. the prohibition referred to in paragraph 4 are not cancelled, as well as cancel a penalty, interest and late payment of the amount of money outstanding commitments suppression. ";
believe the current text of article about the first part.
13. To supplement the law with the chapter VII1 as follows: "the chapter VII1 out-of-court redress process 46.1 article. Out-of-court redress process

(1) the Company shall have the right to simultaneously apply for legal protection of the initiation of the proceedings and ask the Court to declare the implementation of a process of redress, if the following conditions occur: 1) company has developed an out-of-court redress process measures according to this law, article 33 and 37;
2) out-of-court redress process measures have brought their creditors, whose main claims consists generally in more than half of the main claim amount;
3) company has agreed with the administrators and creditors for out-of-court redress administrator;
4) company has received the administrator's opinion on extrajudicial measures of legal protection plan.
(2) extra-judicial redress process apply rules of law, where this chapter provides otherwise.
(3) extra-judicial redress process not apply article 32 of this law in the first part of the criteria.
(4) extra-judicial redress process shall not apply to article 33 of this law, in the said methods that require the consent of the relevant tax administrations.
(5) the out-of-court redress process shall not apply to article 33 of this law the second part, on the need to obtain the consent of the secured creditor interest decreases.
(6) extra-judicial redress process applied this law, article 33 provisions of the second paragraph on the need to obtain the consent of the secured creditor to reduce the principal sum, if the principal sum of the secured creditor's reduction of more than ten percent.
46.2 article. Administrator of out-of-court redress process (1) the Administrator of an out-of-court redress process shall be appointed by the Court after the advice of the company.
(2) the company and its creditors agreed on the administrator's choices (46.1 of the first paragraph of article 3.) is considered to be achieved if out-of-court redress process measures are coordinated by this law, the first paragraph of article 46.1 referred to in paragraph 2, the minimum number of creditors.
46.3 article. Out-of-court redress process measures (1) the out-of-court redress process action plan must ensure that the plan is not agreed between the vendor benefits from the legal protection process of implementation is at least as great as if the legal protection process of the action plan at the time the company declared insolvency and bankruptcy proceedings.
(2) non-judicial remedies in the process plan in addition to this law, article 37 provided for in the second paragraph of the news show: 1) administrator out-of-court redress process;
2) justification out-of-court redress process for compliance with the plan of the first part.
(3) article 36 of this law the consequences referred to in there after the Court has approved the out-of-court redress process action plan. "
14. Article 50: replace the words in paragraph 2 and the number "which alone or together exceed 1000" with the words "and the number from which the amount of the principal sum alone or together exceed 1500";
to supplement the article with point 7 by the following: ' 7) has timed some of this law, article 45 of the cases referred to in the third subparagraph. "
15. Supplement article 52 the first part of paragraph 4 by the following: "4) administrator the legal protection process."
16. Replace article 53, fourth paragraph, the words "and the number of claims, the extent to which individually or together exceed 1000" with words and figure "whose main claim amounting to more than 1500 individually or jointly".
17. Replace article 54, third subparagraph, first sentence, the numbers and the words "paragraphs 4 and 5" with numbers and words "4, 5 and 6".
18. To supplement the law with article 56.1 as follows: "article 56.1. Administrator bankruptcy legal protection proceedings (1) the Administrator shall submit an application for insolvency proceedings in accordance with article 50 of the law referred to in paragraph 7, the application features: 1) the name of the Court in which the application is submitted;
2) debtor's business name, registration number and location (legal address);
3 the subject matter of the application and justification);
4) debtor's representative or representatives of the insolvency case.
(2) the application shall be accompanied by documents justifying the facts referred to in the application. "
19. Supplement article 60 with a fifth by the following: "(5) the provisions of this article shall not apply if, on the basis of this law, in article 50.6 or 7 above, is declared insolvency process."
20. Article 63: Add to the first paragraph of point 1.1 the following: "11) immediately decide on the debtor's representative or delegate the determination of insolvency cases and submit this decision to the Court, as well as send a representative or representatives of the debtor, if, on the basis of this law, in article 50, paragraph 6, after the company's bankruptcy process, the application is declared insolvency proceedings;
Add to the first paragraph of point 2, the words "and the debtor balance";
replace the second paragraph, the word "application" with the word "submission".
21. the express article 64, paragraph 10 by the following: ' 10) refuse any claim or close any settlement in the name of the debtor in relation to the debtor's claims against third parties, if it voted for three quarters of the members present and voting; the vendor ".
22. Make 66. paragraph 5 of article as follows: "5) to develop a draft settlement or recovery plan;".
23. Article 70: make the first paragraph by the following: "(1) the claims of creditors against a debtor shall be made an administrator one month from the date of entry in the register of the insolvency of the debtor's insolvency proclamation. The Court may determine a longer period for submission of claims of creditors, which may not exceed three months, as against the debtor in Latvia started in Council Regulation No 1346/2000, article 3, paragraph 1 or 2 set out in the insolvency procedure. ";
replace the second and third paragraph, the words "Court" with the words "referred to in the first subparagraph."
24. Article 73: Supplement to the second part of the article follows:

"(2) If the creditor's claim does not meet the requirements of the laws, the administrator shall immediately forward the request to the vendor within five days, but not later than five days after the claims of creditors of the sign-up deadline to fix the shortcomings noted. If the creditor corrects the deficiencies in the prescribed period, it is considered that the creditor's claim is filed within the time limit. If the vendor does not eliminate the deficiencies in the prescribed period, the administrator shall take a decision on non-recognition of the claim of the creditor or partial recognition of the five days of deficiencies within the current deadline. ";
believe the current text of article about the first part.
25. Article 74: make the first paragraph by the following: "(1) After examination of the claims of creditors, the administrator shall adopt a decision on the recognition of the claim of the creditor without recognition or partial recognition. The administrator fully or in part, does not recognize the creditor's claim, for which there is a dispute between the debtor and the creditors. "
adding to the seventh paragraph after the words "the non-recognition of the claim of" with the words "or partial recognition of the claim within three days of its adoption";
to make an eighth of the following: "(8) a decision on the recognition of the claim of the creditor without recognition or partial recognition of the administrator adopted five days after the receipt of the claim. If the claim filed by creditors of the application deadline, the decision on the recognition of the claim of the creditor without recognition or partial recognition of the administrator shall adopt, not later than one month after receipt of the creditor's claim. "
26. Turn off the second part of article 75.
27. Supplement article 77 with 8.1 part as follows: "(81), of the voting creditors are eligible to vote only" for "or" against "."
28. in article 78: replace the second paragraph, the words "in the Court" with the words "this law and article 70 referred to in the first paragraph of" and the words "recognized the claim of" with the words "recognized the main claim";
make the third paragraph as follows: "(3) the number of votes determined by the meeting of creditors, the creditors voting less main claim a voice; the rest of the voting creditors ' votes determined by dividing each vendor's main voting the claim with the lowest voting in the main claim of the creditor. "
replace the fifth paragraph, the words "the principal sum to the amount of" with the words "the principal amount of the claim".
29. Make 80. the third paragraph of article as follows: "(3) the notice of a meeting of creditors, the administrator specifies the debtor company, registration number, and applied for the total amount of the claims of creditors. If the register of claims of creditors have registered more than 100 creditors, notice of meeting of creditors the administrator invites the creditors whose claims do not exceed one percent of the entire eligible amount of the claim, United and empower one representative. "
30. Make 81. the first paragraph of article 6 paragraph 5 by the following: "5) the approval of the balance sheet of the debtor (article 63, first paragraph, point 2);".
31. Supplement article 82 the first part with the words "except where the Court approved settlement".
32. To exclude article 83, first paragraph, the words "or settlement".
33. Article 99: make sixth as follows: "(6) If the sale of the mortgaged property, the debtor received a sum of money which is not covered by the claims of secured creditors, the creditors after the administrator's decision not to cover part of the claim is obtained without the secured creditor status. The Administrator's decision not to cover separately the main claims and outstanding blakusprasījum. If the secured creditor its claims administrator, signed up for this law, article 70, first paragraph, the time limit referred to in the claim does not cover vendor that subparagraph to be granted voting rights in article 78 of this Act. ";
to supplement the article with the seventh subparagraph by the following: "(7) in the sixth paragraph of this article, the decision of the administrator adopted and sent to the vendor within five days from the date on which the creditor transferred funds obtained in the sale, as well as inform the creditors the next vendor meeting."
34. Article 108: Supplement to article 1.1 part as follows: "(11) settlement project may provide benefits according to the resources devoted to who funds settlements. If a settlement is not running and the previous bankruptcy, the benefits obtained remain valid and claims against debtor arising from the enforcement of the settlement funds granted shall be regarded as expenses of the insolvency proceedings. The benefit granted shall not interfere with the interests of secured creditors ".
make the second paragraph as follows: "(2) the settlement project, based on the decision of the creditors ' meeting and the meeting of the creditors accepted the terms of the settlement, the development of the debtor's representative or administrator."
35. in article 111: Supplement to the second part of the article as follows: "(2) the meeting of creditors may not decide on the restoration, while the Court is in effect.";
believe the current text of article about the first part.
36. Article 113: make the first paragraph by the following: "(1) upon approval of the settlement in court is restored by the governing bodies of the debtor. The administrator supervises the debtor's management bodies and mediation rules. ";
to make a fifth by the following: "(5) After the execution of the settlement administrator with a court application for the termination of the insolvency proceedings. The application shall be accompanied by proof that he approves of these facts. "
37. To supplement the law with 113.1 and 113.2 article as follows: "article 113.1. (1) annulment of the settlement Administrator, the creditor or the creditor group may ask the Court to cancel the mediation if: 1) it is the conclusion of this law have been infringed;
2 the conclusion obtained) by using deceit or duress, or the law;
3) the debtor does not comply with its provisions.
(2) the decision on the abolition of the settlement adopted by the Court.
(3) if the Court cancels the settlement administrator takes over the administration of the property of the debtor and 82 of this law in accordance with the procedure laid down in article shall convene a meeting of creditors of the other insolvency situation.
Article 113.2. Stopping settlement Settlement is fully or partially suspended, if in accordance with the Council Regulation No 1346/2000, article 33, paragraph 1, the persons mentioned by the Court of Justice suspended the application against the debtor in the Latvia article 3 of this Regulation (2) set out in the insolvency proceedings in accordance with article 33 of that regulation. "

38. To supplement the first part of article 115 with 3 as follows: "3) settlement has been canceled."
39. Replace article 116 in the fifth paragraph, the words "the present vendor" with the words "present-existing creditors ' voting.
40. Add to article 119 in the fourth paragraph as follows: "(4) the reorganisation plan may provide benefits according to the resources devoted to the persons who shall provide funds for the implementation of the restoration plan. If the bailout plan is not executed and are previous bankruptcy, the benefits obtained remain valid and claims against debtor arising from the implementation of the plan of allocation shall be regarded as expenses of the insolvency proceedings. The benefit granted shall not interfere with the interests of the secured creditor. "
41. Make 121. the third paragraph of article as follows: "(3) the reorganisation plan has been adopted, if you vote more than half of the creditors entitled to vote."
42. the express article 131 the following: ' article 131. The commencement of bankruptcy proceedings initiated by an Administrator if the bankruptcy procedure: 1) the first meeting of creditors is not accepted the settlement and are not supported for the possibility of rehabilitation;
2) rescue plan has not been adopted;
3) rescue plan has not been approved;
4) joined Council Regulation No 1346/2000 laid down in article 27. '
43. Article 132 of the turn.
44. Article 137: replace the fifth paragraph, the words "in the Court" with the words "this law and article 70 referred to in the first subparagraph.";
express the sixth part as follows: "(6) the Following second and third subparagraphs of that insolvency proceedings and cover the costs of this article fourth and fifth in part satisfaction of the claims of creditors of the debtor's remaining funds are distributed to the other unsecured creditors of the principal sum (without interest), which were submitted for this law, article 70 of the vendor referred to in the first subparagraph within the time limit for making a claim. This round is pleased to provide the vendor claims it does-in part and that the secured creditor did not cover claims in part one of this law, in accordance with article 99 of the sixth part, if the secured creditor's claim filed this law, article 70 of the time limit referred to in the first subparagraph. ";
to make an eighth of the following: "(8) the Following second and third subparagraphs of the insolvency proceedings referred to in the cost recovery and this article in the fourth, fifth and sixth in part satisfaction of the claims of creditors of the debtor's remaining funds are distributed to unsecured creditors to the extent of the principal sum (without interest), which were submitted by article 70 of this law referred to in the first subparagraph the period of application of the claims of creditors, but not later than one year from the date of When the receiver is entered in the register the particulars of the debtor's insolvency proclamation. This round is pleased to provide the vendor claims it uncovered in the part of the secured creditor and claims it does not cover part of this law, in accordance with article 99 of the sixth part, if the secured creditor's claim filed by article 70 of this law referred to in the first subparagraph. "
45. Article 138 of the expression by the following: ' article 138. Completion of the bankruptcy decision on the completion of bankruptcy procedures adopted in the final meeting of creditors no later than one month after the bankruptcy measure. Decision on the completion of the bankruptcy proceeding is taken, if you vote more than half of the voting creditors. "
46. in article 139: replace the words "in the name of the article the termination conditions" with the word "termination";
replace the second part of paragraph 2, the word "concluded" with the word "executed";
to supplement the article with the fourth paragraph as follows: "(4) the application for termination of the insolvency proceedings, if completed, in addition to the bankruptcy proceedings referred to in the third subparagraph, the documents added to your activity report and proof of payment of the cash surplus of Council Regulation No 1346/2000 article 3 paragraph 1 set out in the insolvency liquidator involved if the Court against a debtor initiated the regulation point 2 of article 3 set out in the insolvency proceedings."
47. Article 151: replace the words "in paragraph 1, the minimum monthly salary of fifty" with a number and the word "5000 lats";
Replace in paragraph 2, the words "one hundred minimum monthly salary" with a number and the word "10 000 lats.
48. Article 163 of the expression as follows: "article 163. An individual's property sales and satisfaction of claims of creditors for the implementation of the plan (1) From an individual's features, as well as of the means obtained from the person's belongings as a result of the sale, except the funds obtained in the fifth subparagraph of this article, in case the first set is the full cover maintenance payments and then this law laid down in chapter XXXI of the insolvency costs.
(2) upon the insolvency practitioner costs are paid by the natural person and its dependent persons natural persons concerned property sales and satisfaction of claims of creditors plan to specific amounts of money, to every human being not less than the minimum monthly salary.
(3) the claims of creditors are United in one group without priorities. After the first and second subparagraph payment not less than once a month, in proportion to each creditor's claim for the amount of the claims of creditors are satisfied, subject to the case referred to in the fifth subparagraph.
(4) the satisfaction of the claims of creditors begin no later than two months after the physical persons declaring insolvency.
(5) out of the money received from selling as collateral (pledged) to serve an individual's property covered in the first auction expenses, including the cost of pledged property valuation and article 175 of this law in the fourth part of the administrator, and then provide the presentation of the creditor's claim.
(6) If the sale of collateral (pledged) to serve an individual's assets, the amount of money received in excess of the claims of creditors and auction expenses, from this amount, the remaining funds in favour of natural persons, which consumed the first, second, third and fourth paragraph.

(7) If the sale of collateral (pledged) to serve an individual's property, received a sum of money which is not covered by the claims of secured creditors and auction expenses, the claims of creditors shall not cover part of other natural persons means according to this article, the third and fourth parts of the rules. "
49. To replace the second paragraph of article 174, the word "seven" with the word "five".
50.184. in the first paragraph: replace the words "in paragraph 1, the minimum monthly salary of five" with the words "minimum" of three monthly salary;
Replace paragraph 2 of point "a", the words "the minimum monthly salary of three" with the word "minimum" of one monthly salary.
51. Replace article 185 the first part of paragraph 6, the words "and business insurance" with the words "monitoring and verification of transactions, as well as property and business insurance".
52. Supplement article 189 first and second subparagraph after the word "Creditors" with the words "company (legal protection)".
53. The transitional provisions: to make paragraph 2 by the following: "2. the insolvency administration, deciding on insolvency in the administration costs of the insolvency proceedings, which were initiated according to the law" on insolvency of undertakings and companies ", the Cabinet of Ministers of 14 March 2006, the provisions of no. 201" insolvency practitioner remuneration and expenses of the administration of the order, with the exception of the provisions concerning the amount of remuneration of the Administrators (not including additional remuneration for each employee whose claim satisfied from the employee claims guarantee fund) that would be in accordance with this Act. ";
transitional provisions be supplemented by 2.1 points in the following: "2.1 insolvency proceedings initiated pursuant to the law" on insolvency of undertakings and companies ", the administrator is entitled to receive remuneration from the insolvency administration granted funds for this purpose, if: 1) administrator within two months after the defeat of the debtor in the public record has not submitted a request to the administrators of their remuneration;
2) debtor these processes excluded from the public register until 2 July 2009 and administrator until 2009 November 30, has not submitted a request to the administrators of their remuneration;
3) administrator to cancel the decision of the Court of the administrator's duties the law "about the company and the companies ' insolvency ' article 28, first paragraph, point 2 or 3 in the case or if the administrator certificate is cancelled because the administrator to get a certificate supplied incorrect information.";
transitional provisions supplementing with 8 and 9 paragraph by the following: ' 8. If legal protection process is initiated up to 30 June 2009 and is not terminated, the legal protection process of the implementation time limit may be extended for a period not exceeding two years from the date of entry into force of the judgment of the Court of Justice on the legal protection process. The legal protection process of the implementation of the extension of the provisions of this law on the protection of the legal process to amend the plan.
9. If the natural person bankruptcy process has been declared until 30 June 2009 and is not terminated, the natural person is obliged, within 30 days from the date of entry into force of the amendment to submit your items for sale and satisfy the claims of creditors of any amendments to the plan for the approval of the Court. "
The law shall enter into force on July 1, 2009.
The Parliament adopted the law of 11 June 2009.
President Valdis Zatlers in Riga V. 26 June 2009 Editorial Note: the law shall enter into force by 1 July 2009.