Best Restructuring & Insolvency Lawyers in Nur-Sultan

About Restructuring & Insolvency Law in Nur-Sultan, Kazakhstan

Restructuring and insolvency law in Nur-Sultan, Kazakhstan is focused on helping individuals and businesses manage financial difficulties, reorganize debts, and liquidate assets if necessary. The legal framework is designed to protect the interests of creditors and debtors while ensuring that fair procedures are followed. This area of law covers a range of processes, from voluntary restructuring with creditors to formal bankruptcy proceedings in court. In recent years, Kazakhstan has modernized its insolvency laws to provide more structured procedures and greater transparency in business operations.

Why You May Need a Lawyer

Seeking the help of a restructuring and insolvency lawyer in Nur-Sultan is important for several reasons. Some common situations where legal assistance is required include:

• When a business is experiencing severe financial difficulties and needs to consider restructuring debts or assets
• If you are a creditor seeking to recover debts from an insolvent company or individual
• When facing bankruptcy proceedings, either voluntarily or as a result of creditor actions
• For guidance on out-of-court settlements with creditors or debtors
• If you need assistance with asset tracing and recovery
• To ensure compliance with local and national insolvency legislation
• Representation in court during insolvency disputes

A lawyer can provide expert advice, negotiate with other parties, ensure procedural fairness, and protect your rights throughout the restructuring or insolvency process.

Local Laws Overview

The legal framework for restructuring and insolvency in Nur-Sultan is governed by the Civil Code of the Republic of Kazakhstan, the Law on Bankruptcy, and accompanying regulations. Some key aspects include:

• Initiation of Insolvency: Both debtors and creditors can initiate insolvency proceedings. The law outlines clear criteria for financial insolvency and the responsibilities of the parties involved.
• Types of Proceedings: There are options for voluntary restructuring, formal bankruptcy, and external management. Each has specific procedures, conditions, and legal effects.
• Creditor Rights: Creditors have defined rights to file claims, participate in creditor committees, and vote on restructuring plans.
• Restructuring Plan Approval: Any restructuring plan must be approved by a majority of creditors and then confirmed by the court.
• Assets and Liability: The law provides mechanisms for managing, evaluating, and liquidating assets to satisfy creditor claims. There are rules to prevent fraudulent transfers or preferential payments.
• Cross-border Insolvency: Kazakhstan’s regulations also address insolvencies with international elements, allowing coordination with foreign courts and administrators.
• Bankruptcy for Individuals: There is a specific procedure for personal insolvency that includes debt adjustment plans and liquidation, depending on the financial situation.

These laws are intended to protect the legal and economic interests of all parties and maintain financial stability in the region.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring is a process where a company or individual reorganizes financial obligations to make them more manageable, usually aiming to avoid insolvency. Insolvency, on the other hand, means that the company or individual cannot pay debts as they become due, often leading to bankruptcy proceedings.

Who can file for bankruptcy or insolvency in Nur-Sultan?

Both individuals and legal entities (such as companies or entrepreneurs) can file for bankruptcy or be subjected to insolvency proceedings in Nur-Sultan. Creditors can also initiate proceedings against debtors.

What happens to a company’s assets during insolvency?

During insolvency, a court-appointed administrator or external manager may gain control over the company’s assets. These assets are evaluated and, if necessary, liquidated to pay off creditors according to a specific order set by law.

Can an insolvent business continue operating?

In some cases, yes. If the court and creditors approve a restructuring plan or appoint an external manager, the business may continue operating while financial obligations are reorganized.

How long do insolvency proceedings typically take in Kazakhstan?

The duration varies depending on the complexity of the case, number of creditors, and the assets involved. Proceedings can last from several months to several years.

Are there risks for company directors in insolvency?

Yes, directors can be held liable for losses if it is proven they acted negligently or engaged in fraud before or during insolvency. The law includes provisions to hold directors personally accountable in certain cases.

Can creditors challenge transactions by the debtor before insolvency?

Yes. Creditors can contest transactions that are considered preferential, undervalued, or made to defraud creditors within a specified period prior to insolvency proceedings.

What debts cannot be discharged in bankruptcy?

Certain debts, such as alimony, criminal fines, and debts arising from fraud, cannot be discharged during bankruptcy and must still be paid by the debtor.

Is there a procedure for informal or out-of-court restructuring?

Yes, parties can negotiate settlements or restructuring agreements out of court. Such agreements are valid if all affected creditors consent and legal procedures are followed.

Can foreign entities be involved in insolvency proceedings in Nur-Sultan?

Foreign creditors and companies can participate in insolvency proceedings in Kazakhstan. The law also provides for recognition of certain foreign insolvency-related court decisions.

Additional Resources

If you require further assistance or information about restructuring and insolvency in Nur-Sultan, consider reaching out to the following resources:

• The Ministry of Justice of the Republic of Kazakhstan - Provides official information and support regarding legal procedures.
• The Astana International Financial Centre (AIFC) - Offers dispute resolution and regulatory support for financial and commercial cases.
• The Kazakhstan Bar Association - Can help you find qualified legal professionals specializing in restructuring and insolvency.
• Authorized bankruptcy managers and external administrators registered with court registries.
• Business support organizations and chambers of commerce, which may offer counseling and referral services.

Next Steps

If you believe you or your business require legal assistance in restructuring or insolvency matters in Nur-Sultan, the following steps are recommended:

• Document your financial situation by gathering all debts, assets, contracts, and correspondence with creditors.
• Contact a qualified restructuring and insolvency lawyer in Nur-Sultan to discuss your options and receive tailored advice.
• Ensure you understand all available options, including informal agreements, court proceedings, and possible consequences.
• If necessary, engage a licensed insolvency practitioner or administrator as required by the law.
• Follow your lawyer’s guidance to comply with procedural requirements, submit necessary documents to the court, and communicate effectively with creditors and authorities.

Acting early and consulting with a knowledgeable local lawyer can help you protect your rights, minimize losses, and achieve the best possible outcome in a difficult financial situation.