Law on Bankruptcy expands rights of debtors and lenders

The President signed the Law “On amendments and addenda to the Law of the Republic of Uzbekistan “On Bankruptcy”, the press service of the Justice Ministry reports.

Now the debtor and the creditor have the right to initiate the procedure for restoring the solvency of debtor or liquidation proceedings.

Also, now a settlement is not considered a bankruptcy proceeding. The debtor and creditors are entitled to conclude a settlement agreement at any stage of consideration of the bankruptcy case by the economic court.

According to the Law, the term for bankruptcy proceedings is 1 month. (Until today, this period was 2 months).

In addition, judicial rehabilitation is introduced for a period not exceeding 24 months. 

This Law shall enter into force on the day of its official publication.