RESOLUTION OF THE MINISTRY OF ECONOMICS OF THE REPUBLIC OF BELARUS

of June 28, 2004 No. 159

About approval of the instruction about assessment and procedure for sale of the company and other property of the debtor who is in the procedure of economic insolvency (bankruptcy)

According to the Regulations on the Ministry of Economics of the Republic of Belarus approved by the resolution of Council of Ministers of the Republic of Belarus of October 31, 2001 No. 1575, and for the purpose of enhancement of assessment procedure and procedure for sale of the company and other property of the debtor who is in the procedure of economic insolvency (bankruptcy), the Ministry of Economics of the Republic of Belarus DECIDES:

1. Approve the enclosed Instruction about assessment and procedure for sale of the company and other property of the debtor who is in the procedure of economic insolvency (bankruptcy).

2. This resolution becomes effective from the date of its official publication.

Approved by the Resolution of the Ministry of Economics of the Republic of Belarus of June 28, 2004 No. 159

The instruction about assessment and procedure for sale of the company and other property of the debtor who is in the procedure of economic insolvency (bankruptcy)

Chapter 1. General provisions

1. This Instruction about assessment and procedure for sale of the company and other property of the debtor who is in procedures of economic insolvency (bankruptcy) (further - the Instruction), determines procedure for carrying out and technique of assessment of the companies, assets, separate types of property and property rights belonging to the debtor (daleeimushchestvo if the Instruction specially does not stipulate other), and also procedure for sale of the specified companies and property.

2. The debtor in this Instruction is understood as the insolvent legal entity, being the commercial organization (except for the state companies, subjects of the natural monopolies, legal entities which are regime and especially sensitive sites and (or) the having such objects, the legal entities having the objects which are only in property of the state providing maintenance of necessary level of defense capability, functioning of strategically significant industries of economy and (or) other important state requirements), or the non-profit organization operating in the form of consumer cooperative, charity or other foundation, being in the procedure of economic insolvency (bankruptcy).

The company in this Instruction is understood as the single property complex used for implementation of business activity by the debtor. The structure of the company as single property complex joins all types of property intended for implementation of business activity of the debtor, including the building, construction, the equipment, stock, raw materials, products, rights to claim, and also the rights to the designations individualizing the debtor, its products, works and services (trade name, trademarks, service marks), other exclusive rights belonging to the debtor, except for the rights and obligations which cannot be transferred to other persons, and also the parcels of land according to the land legislation.

3. For the purposes of this Instruction the following basic concepts and their determinations are used:

hopeless receivables - receivables which were not demanded in time on which the term of limitation period expired;

cash flow - difference between the amounts of receipts and payments of money of the company for certain period of time;

discounting of cash flow - transformation of future cash flows expected from the estimated company to its cost for date of assessment;

borrowed funds - the amount of short-term and long-term obligations;

earnings capitalization - transformation of size of the income expected from the estimated company for date of assessment to their size in the future;

competitive weight - all property of the company which is available at the time of opening of bankruptcy proceedings and revealed during bankruptcy proceedings;

liquidity - possibility of transformation of asset of the company into money for payment of obligations for its liabilities, ease of realization of property;

current assets of the company - material values, receivables and the financial investments, and also money of the company;

the company analog - similar according to the main economic, material, technical and other characteristics with the estimated company other company which price is known from the transaction which took place under similar conditions;

exposure term - the term planned for sale of the company in the form of public offer;

discount rate - the interest rate used for recalculation of future cost of the company or property which is part of the company to this timepoint;

capitalization rate - the relation of market value of property to the net annual income which is brought in to them;

pure cash flow - the size of the money received for certain period of time and being at the command the companies which can be distributed without prejudice to its further functioning.

Other concepts used in the legislation on economic insolvency (bankruptcy) and which are specially not stipulated by this Instruction - in the value established by the Presidential decree of the Republic of Belarus of November 12, 2003 No. 508 "About some questions of economic insolvency (bankruptcy)" (The national register of legal acts of the Republic of Belarus, 2003, No. 127, 1/5085) and the Law of the Republic of Belarus of July 18, 2000 "About economic insolvency (bankruptcy)" (The national register of legal acts of the Republic of Belarus, 2000, No. 73, 2/198).

4. In relation to cost determination of the company or property which is part of the company the following cost types are used:

market value;

utilization cost;

special market value, including salvage value and investment cost.

5. Market value - the amount for which object of assessment can be realized in the market.

At the same time the following conditions shall be complied:

the parties of the transaction have sufficient awareness on object of assessment and the market of similar objects;

the parties of the transaction are effective competently, prudently, voluntarily and honesty;

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