Best Restructuring & Insolvency Lawyers in Yangon

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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...
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About Restructuring & Insolvency Law in Yangon, Myanmar

Restructuring and insolvency law in Yangon, Myanmar, is designed to address situations where individuals or companies encounter significant financial difficulties and are unable to fulfill their debt obligations. These laws offer crucial mechanisms for resolving financial distress, whether through formal insolvency proceedings or voluntary arrangements between debtors and creditors. In recent years, Myanmar's legal framework in this area has undergone modernization to align with international standards and support economic growth. In Yangon, the commercial hub of Myanmar, restructuring and insolvency proceedings are particularly relevant given the city’s dense business activity and vibrant private sector.

Why You May Need a Lawyer

Legal advice is essential in restructuring and insolvency matters for several reasons. Some common situations where you might require professional help include:

  • Facing an inability to pay creditors or suppliers on time
  • Receiving notices of legal action or winding up petitions from creditors
  • Negotiating with banks and financial institutions regarding outstanding loans
  • Undertaking voluntary business restructuring or seeking to rescue a distressed business
  • Understanding director and shareholder liabilities during insolvency
  • Protecting your personal assets from business creditors
  • Handling employee entitlements and contractual obligations during insolvency
  • Setting up or participating in creditor committees
  • Participating in cross-border insolvency proceedings with assets or debts in Myanmar
  • Needing to apply for business rehabilitation or liquidation through the court system

Having a lawyer ensures you navigate these complex processes while meeting your legal obligations, minimizing personal risk, and protecting your interests as much as possible.

Local Laws Overview

Myanmar’s restructuring and insolvency legal regime has evolved significantly. The Myanmar Insolvency Law 2020 is currently the principal law governing insolvency and restructuring procedures for companies and individuals in Yangon. Key features include:

  • Corporate Rescue and Rehabilitation: The law now allows for business rescue procedures, including court-approved rehabilitation plans, that aim to restore viable businesses rather than automatically commencing liquidation.
  • Voluntary and Compulsory Liquidation: Both debtor-initiated (voluntary) and creditor-initiated (compulsory) winding up procedures are available, each with specific steps and requirements.
  • Secured and Unsecured Creditors: The law details the rights of secured and unsecured creditors and their priority for repayment in insolvency proceedings.
  • Appointment of Insolvency Practitioners: Only licensed insolvency professionals can be appointed as liquidators or administrators, bringing oversight and expertise to the process.
  • Director Duties and Liabilities: Company directors have strict duties to act in the best interests of creditors when insolvency is likely, with personal liability possible for wrongful or fraudulent trading.
  • Cross-Border Matters: Myanmar’s law now recognizes some cross-border insolvency matters and offers limited cooperation with foreign proceedings.
  • Individual Insolvency: Similar frameworks apply to individuals facing bankruptcy, including asset management and discharge provisions.

Businesses and individuals in Yangon must comply with these rules, and failure to do so may result in legal penalties, disqualification from company management, or personal liability.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring aims to reorganize a company's finances, operations, or structure to avoid insolvency, which is the legal state where a person or company cannot pay their debts as they fall due. Insolvency may lead to legal proceedings for debt resolution.

When should a company in Yangon consider starting insolvency proceedings?

A company should consider insolvency proceedings when it is unable to pay its debts on time, has significant overdue liabilities, or is threatened with legal actions from creditors that cannot be settled privately.

What are the steps involved in a company liquidation in Myanmar?

Company liquidation usually involves a formal application to the court, appointment of an insolvency practitioner, asset realization, settling creditors’ claims according to statutory priorities, and ultimately deregistration of the company from official records.

Can a business avoid liquidation through restructuring?

Yes, the Myanmar Insolvency Law allows companies to submit rehabilitation or restructuring plans to creditors and the courts. If approved, these can provide breathing space and a chance to return to financial health.

Who manages insolvency proceedings in Myanmar?

Licensed insolvency practitioners, who act as administrators, liquidators, or trustees, manage insolvency proceedings. They oversee the process and ensure fairness to both debtors and creditors.

Are directors personally liable for company debts in Myanmar?

Directors are generally not personally liable for company debts except in cases of wrongful trading, fraud, or where they breach statutory duties during insolvency or near-insolvency situations.

How are employees affected during company insolvency?

Employees may be entitled to certain preferential payments such as unpaid wages, severance, or outstanding benefits. These have special priority but may only be paid in full if there are sufficient company assets.

What is the process for individual bankruptcy in Yangon?

Individuals facing insolvency can file for bankruptcy, leading to asset assessment and management by a trustee, distribution of assets to creditors, and possible discharge of remaining debts after a court-approved period.

Can foreign creditors participate in Myanmar insolvency proceedings?

Yes, foreign creditors can lodge claims, though they must follow prescribed procedures. Myanmar’s insolvency law provides mechanics for recognizing and cooperating with some foreign insolvency judgments.

How can I appoint a lawyer or insolvency practitioner in Yangon?

You can appoint a lawyer or insolvency practitioner by contacting a licensed professional or law firm with experience in restructuring and insolvency. The Myanmar government provides a list of recognized practitioners for this purpose.

Additional Resources

If you need further information or support, consider reaching out to the following organizations and bodies:

  • Directorate of Investment and Company Administration (DICA): The government department responsible for company registrations and insolvency notices.
  • Myanmar Insolvency Practitioners Association: Provides information on licensed insolvency professionals.
  • Yangon Bar Association: Can help you find qualified legal professionals specializing in insolvency law.
  • Myanmar Judiciary: The commercial courts in Yangon handle insolvency and restructuring legal proceedings.
  • Union Supreme Court of Myanmar: For appeals or higher-level insolvency matters.
  • Chambers of Commerce and Industry: Some business associations provide guidance to members during business distress.

Next Steps

If you are facing financial difficulties or anticipate possible insolvency, it is important to act early. Here is how you can proceed:

  • Gather all relevant financial documents, including balance sheets, loan agreements, and correspondence with creditors
  • Assess your position honestly and note all deadlines for debt repayment or legal notices
  • Contact a qualified lawyer or licensed insolvency practitioner experienced in Myanmar law for an initial consultation
  • Follow professional advice to avoid unintentional breaches of your legal duties
  • Communicate proactively with creditors but refrain from making commitments without legal guidance
  • Consider alternatives such as restructuring, court-supervised rehabilitation, or voluntary liquidation, depending on your situation
  • Stay informed about your rights and obligations throughout the process

Obtaining timely legal advice in Yangon will help protect your interests and potentially enable your business, or you as an individual, to achieve the best possible outcome during financial distress.

Lawzana helps you find the best lawyers and law firms in Yangon 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 Yangon, 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.