Best Restructuring & Insolvency Lawyers in Myanmar

Share your needs with us, get contacted by law firms.

Free. Takes 2 min.

Or refine your search by selecting a city:

Decha & Co Limited
Yangon, Myanmar

Founded in 2017
25 people in their team
Burmese
Thai
English
Decha & Co Limited is a boutique firm that provides legal and business solutions. With us, it’s professional and personal. We learn about our clients and their business. With affiliate offices throughout ASEAN. Why We find solutions for our clients in Southeast Asia. We get to know our...
Moe & Tun Associates Ltd
Yangon, Myanmar

Founded in 2012
9 people in their team
English
Moe &Tun Associates is an independently owned general consultation and legal services firm in the Republic of the Union of Myanmar that specializes in meeting the needs of international and local professional and business owners.We provide comprehensive advice across a wide spectrum, guiding...
AS SEEN ON

Browse restructuring & insolvency law firms by city in Myanmar

Refine your search by selecting a city.

About Restructuring & Insolvency Law in Myanmar

Restructuring and insolvency law in Myanmar governs the processes and procedures that companies and individuals follow when facing financial difficulties or significant debt. These laws aim to provide legal frameworks for businesses to reorganize their financial affairs, resolve debt challenges, and, if necessary, orderly wind down their operations. In Myanmar, the legal system offers both preventive measures, such as restructuring and corporate rehabilitation, as well as formal insolvency procedures, including liquidation (also called winding up). Effective use of these laws can help businesses recover or ensure fair treatment for creditors and debtors.

Why You May Need a Lawyer

Seeking legal advice is important in restructuring and insolvency situations for several reasons:

  • Assessing the viability of your business and identifying early warning signs of insolvency
  • Navigating complex legal procedures and documentation required for restructuring plans
  • Understanding your rights and obligations if you are a creditor, debtor, or shareholder
  • Communicating and negotiating with creditors to find mutually acceptable solutions
  • Ensuring compliance with court procedures and local laws, helping to minimize risks or liabilities
  • Protecting directors and officers from potential legal actions for wrongful trading or misconduct
  • Advising on cross-border insolvencies or the involvement of foreign creditors

Due to the complexity and potential consequences of mistaking legal steps, involving a qualified lawyer early in the process can help protect your interests and facilitate smoother outcomes.

Local Laws Overview

Restructuring and insolvency in Myanmar is governed primarily by the Myanmar Companies Law 2017 and the Insolvency Law 2020. The Companies Law sets out provisions for voluntary arrangements, schemes of arrangement, compromise with creditors, and voluntary or court-ordered winding up. The Insolvency Law modernized and streamlined procedures, bringing Myanmar more in line with international best practices.

Key features of the legal framework include:

  • Corporate Rescue Procedures: Legal processes for financially distressed companies to restructure debts under court supervision
  • Voluntary Arrangements: Mechanisms allowing companies to reach agreements with creditors to avoid liquidation
  • Liquidation: Both voluntary and compulsory liquidation options, including appointment of liquidators and protection of creditors' rights
  • Personal Insolvency: New procedures for individuals unable to pay their debts, including bankruptcy provisions
  • Cross-border Cooperation: Rules to recognize and manage insolvencies involving foreign creditors or assets

There are important roles for administrators, liquidators, creditors, directors, and the courts in each process. Legal representation is often needed to interpret the law’s application to each unique case.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring refers to the process where a business or individual reorganizes its debts, assets, or operational structure to avoid insolvency. Insolvency occurs when a company or person cannot pay debts as they fall due, often leading to legal proceedings to settle debts and distribute assets.

What are signs that a business in Myanmar might need restructuring?

Warning signs include persistent cash flow problems, inability to pay suppliers or staff, legal claims by creditors, non-compliance with loan covenants, and growing debt. Early intervention can help prevent insolvency.

Can creditors force a company into insolvency in Myanmar?

Yes, under Myanmar law, creditors can apply to the court to initiate insolvency proceedings against a debtor company if certain conditions are met, such as non-payment of a legally enforceable debt.

Are directors personally liable for company debts during insolvency?

Directors are generally not liable for company debts unless they have given personal guarantees or engaged in wrongful trading or misconduct. Directors should seek legal advice to limit their personal risk.

How does liquidation work under Myanmar law?

Liquidation, or winding up, involves the orderly closure of a company, sale of its assets, and distribution of proceeds to creditors. It can be voluntary (initiated by the shareholders) or compulsory (ordered by the court).

What is a scheme of arrangement?

A scheme of arrangement is a court-approved agreement between a company and its creditors or shareholders to restructure company obligations or ownership. It requires a majority vote of creditors and court approval.

Can individuals undergo insolvency or bankruptcy in Myanmar?

Yes, Myanmar’s Insolvency Law 2020 introduced clear procedures for individual bankruptcy, giving individuals and creditors a structured process for resolving personal financial distress.

How are creditor rights protected in insolvency proceedings?

Local laws require creditors to be notified of proceedings, submit claims, attend creditor meetings, and vote on proposals. A priority system determines the order in which creditors are paid from available funds.

What is the role of a liquidator or administrator?

A liquidator manages the winding up of a company, collects and sells assets, and pays creditors. An administrator may be appointed temporarily to manage company affairs and develop rescue proposals.

Is cross-border insolvency recognized in Myanmar?

Myanmar’s legal framework allows for recognition of foreign insolvency proceedings and cooperation with foreign courts and representatives, though practical applications may depend on the circumstances and any bilateral agreements.

Additional Resources

When seeking information or support on restructuring and insolvency matters in Myanmar, consider the following:

  • The Directorate of Investment and Company Administration (DICA) - responsible for company registration, statutory filings, and some company matters
  • Myanmar Insolvency Practitioners Association - a professional body for insolvency professionals
  • Myanmar Bar Association - can help with finding experienced legal practitioners
  • The Supreme Court of the Union - publishes relevant judgments and court procedures
  • Licensed law firms with restructuring and insolvency practice areas

Next Steps

If you are facing financial distress or have questions regarding restructuring and insolvency in Myanmar, consider these actions:

  • Assess your business or personal financial situation promptly and gather all relevant documents
  • Seek an initial consultation with a qualified local lawyer specializing in restructuring and insolvency
  • Prepare to discuss your options, including possible business rescue, negotiation with creditors, or liquidation
  • Ensure you understand your legal rights and responsibilities, as well as the possible outcomes of each action
  • Stay informed about important deadlines, filings, and obligations throughout the process

Early legal advice can make a significant difference in resolving financial challenges in the most favorable way possible. Do not hesitate to seek professional guidance tailored to your specific needs.

Lawzana helps you find the best lawyers and law firms in Myanmar through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Myanmar - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.