of November 14, 2001 No. 632-XV
About insolvency
The Parliament adopts this organic law.
(1) the Purpose of this law is establishment of the legal basis for satisfaction of requirements of creditors at the expense of property of the debtor by application of the procedure of the plan to it or by liquidation of property of the debtor and distribution of the received means.
(2) Provisions of this law are applied to the companies irrespective of type of property and organizatsionnopravovy form, to individual entrepreneurs, including owners of the entrepreneurial patent, the insurance companies, investment funds, trust companies, non-commercial societies which are in process of insolvency, registered in the Republic of Moldova in accordance with the established procedure.
(3) the State, administrative and territorial units and legal entities of the public law are not subjects of insolvency.
(4) Process of insolvency is performed according to provisions of the Code of civil procedure and this law.
For the purpose of this law the following concepts are used in value:
insolvency - the financial position of the debtor which is characterized by inability to extinguish payment obligations;
restructuring process - process of accomplishment of complex of the financial, organizational, operational and legal measures initiated by the owner of the company, its shareholders, unitholders (members) and/or his manager, creditors or bodies of the central and local public authority, directed to financial and economic improvement of the company on the basis of capitalization and reorganization, change of structure of assets, modification of operational production process;
debt - the monetary commitment of the company which is not executed by the time of the conclusion of the memorandum agreement, included in subject of the specified document;
the current payments - taxes, charges and other payments, the credits and percent on them, charges for the delays (penalty fee) estimated from the moment of initiation of process of insolvency;
the moratorium - delay for certain period of execution of monetary commitments by the debtor;
converting of debt in the share - transformation of debts of the company to shares upon the demand of his creditors;
the debtor - any person having debt on payment of debt obligations which completion date came including the tax liabilities against whom the application for initiation of process of insolvency is submitted to degree of jurisdiction;
insolvency - the debtor's provision which is characterized by its inability to fulfill monetary commitments which completion date came, including the tax liabilities. Insolvency is, as a rule, supposed if the debtor stopped to make payments;
excessive debt - financial condition of the debtor which responsibility is limited to the law within the cost of its property in case of which the property value of the debtor does not cover the obligations which are available for it;
the procedure of the plan - the procedure applied in relation to the debtor within insolvency process, representing method of satisfaction of requirements of creditors by means of implementation of the plan containing package of measures for financial and economic improvement of the debtor and/or use of debit weight;
liquidation of property - the procedure applied to the debtor within insolvency process, consisting in use of debit weight for the purpose of receipt of money for satisfaction of requirements of creditors of which liquidation of the debtor as the person of law is result;
the managing director - person designated by degree of jurisdiction, for the purpose of implementation of supervision and/or property management of the debtor within insolvency process according to the procedure and according to competence, established by this law;
the tax liability - the obligation on taxes, charges and other payments in the national public budget formed according to the procedure and on the conditions established by the law;
debit weight - all property which is property of the debtor for date of initiation of process of insolvency, acquired or received by it during insolvency process, except for property on which according to the law recovery by enforcement cannot be turned;
secured creditors - class of creditors whose requirements to the debtor appeared before initiation of process of insolvency also are provided with real guarantees according to the law;
unsecured creditors - class of creditors whose requirements to the debtor appeared before initiation of process of insolvency also are not provided with guarantees;
creditors of debit weight - class of creditors whose requirements to the debtor appeared after initiation of process of insolvency also are satisfied previously in the current procedure in process of their emergence;
the liability - the obligation of the debtor to pay to the creditor certain sum of money based on the agreement or the non-contractual obligation provided by the Civil code.
Insolvency of the companies is overcome by the legal procedure which is the insolvency process applied to the insolvent companies and other insolvent subjects and initiated by degree of jurisdiction.
It is excluded
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(1) the Application for initiation of process of insolvency is considered by degree of jurisdiction according to the material and territorial jurisdiction established Civil proceduralby code.
(2) the Degree of jurisdiction has exclusive competence by consideration of the disputes concerning debit weight. Owing to the powers she considers all circumstances important for insolvency process.
(3) the Degree of jurisdiction can accept determinations and without challenge of the parties if this law specially does not provide other.
The challenge of participants of process is performed by degree of jurisdiction on own initiative. The notification on challenge can be performed through the managing director.
(1) the Substantive provisions of decisions and determinations of degree of jurisdiction which are subject according to this law to publication are published in the Official monitor of the Republic of Moldova. Expenses on publication belong to court costs.
(2) the Degree of jurisdiction can make the decision on publication of substantive provisions of decisions and determinations and in local newspapers of zone of the location of the debtor or zone in most of which of creditors is concentrated.
(3) the Notification of participants of process according to parts (1) and (2) it is considered performed after two-day term from the date of publication.
(4) the Notification of participants of process according to this Article is considered sufficient for the proof of their challenge even if this law provides different way of the notification.
(1) Decisions and determinations of degree of jurisdiction can be appealed only in cassation procedure and only in the cases which are specially provided by this law.
(2) the Writ of appeal does not stop execution of decisions and determinations of degree of jurisdiction.
Process of insolvency is initiated only based on the statement for initiation of process of insolvency (further - the action for declaration).
(1) Initiation of process of insolvency assumes availability for this purpose of the bases.
(2) the General basis for initiation of process of insolvency is insolvency of the debtor.
(3) the Special basis for initiation of process of insolvency is the excessive debt of the debtor if the defendant debtor is legal entity whose responsibility according to requirements of creditors is limited to its property. In this case continuation of its activities shall be the basis for assessment of property of the debtor if circumstances allow it.
(1) Obligations of the debtor are considered in the structure and the size existing at the time of submission of the action for declaration if this law does not provide other.
(2) In case of determination of availability of the bases for initiation of process of insolvency it is considered:
a) size of contractual commitments of the debtor, including credit debts and to percent on them. The penalty fee for non-execution of the specified obligations is not considered in case of determination of their size;
b) the size of obligations to the national public budget according to the law, without penalty fee and other financial sanctions.
(3) Requirements of creditors are considered approved according to Article 136.
The debtor, creditors and other persons specified in this law have rights of submission of the action for declaration.
(1) the Debtor has the right to submit the action for declaration if there is threat of approach of its insolvency and it is possible to assume that he will not manage to fulfill monetary commitments in the time (inevitable insolvency) established for their execution.
(2) the giving Right according to part (1) the action for declaration on behalf of the debtor if that is not physical person, its executive body, person who according to the current legislation has the right to represent the debtor, unitholders with the unlimited liability and the debtor's liquidators have.
(1) the Debtor shall submit the action for declaration in the presence of one of the bases provided in Article 22.
(2) the Debtor shall submit the action for declaration if:
a) the complete satisfaction of requirements of one or several creditors which completion date came can result in impossibility of complete satisfaction of requirements of other creditors in case of approach of term of their execution;
b) during its liquidation according to other laws it becomes obvious that it cannot meet the requirement of creditors completely.
(3) the Debtor shall submit the action for declaration without delay, however not later than from the date of emergence of the bases provided by part in a month (2) this Article and Article 22.
(4) in case of not submission of the statement by the debtor in time, provided by this Article, person having according to the current legislation rights of representation of the debtor, unitholders with the unlimited liability and liquidators of the debtor bear subsidiary responsibility to creditors according to the obligations which arose after the term provided by part (3). These persons can be brought to trial established by the law.
(1) in case of insolvency of the debtor because of his founders (members), members of the executive bodies or other persons having the right to instruct, obligatory for execution by the debtor, or able otherwise to exert impact on actions of the debtor (intentional insolvency), specified persons bear subsidiary responsibility to creditors regarding insufficiency of property of the debtor for satisfaction of requirements of creditors.
(2) If the action for declaration is submitted by the debtor having real opportunity completely to meet requirements of creditors (dummy insolvency), he is responsible for the damage caused to creditors as a result of filing of application.
The Action for declaration of the debtor shall contain 1) without fail:
a) fiscal code and numbers of all bank accounts of the debtor;
b) size of requirements of creditors, percent on the credits and penalties;
c) reasons for requirements of creditors and terms of their execution with indication of the amount of the requirements connected with indemnification, caused to life and health of persons, and also requirements for compensation of workers of the debtor;
d) amount of debts to the national public budget;
e) reasons for the bases of insolvency;
f) data on actions for declaration according to which the debtor is defendant, taken cognizance by degrees of jurisdiction, and also about writs of execution concerning property of the debtor;
g) data on property of the debtor, including its money and debt obligations.
(2) In the statement of the debtor physical person also the situation with the obligations of the debtor which are not connected with business activity is reflected.
(3) the Debtor can demand in the statement application of the procedure of the plan, having proved this requirement.
Are enclosed to the action for declaration of the debtor:
a) the copy of the charter of the debtor (the agreement on the introduction in unitholders);
b) participant list (members) of the debtor;
c) the balance sheet as of date of the last financial statement;
d) the documents certifying structure and the size of property of the debtor physical person (individual entrepreneur);
e) data of public registers on property of the debtor, including on pledged property;
f) last audit report and/or report of the auditor on results of control of financial activities of the debtor;
g) the list of creditors and debtor's debtors with indication of creditor and receivables, addresses and details of creditors and debtors;
h) other proofs confirming information specified in Article 28.
(1) the Action for declaration can be submitted by the creditor if he has legitimate interest in initiation of process of insolvency and can prove the requirements, and also the bases for initiation of process of insolvency.
(2) in case of adoption of the action for declaration of the creditor the degree of jurisdiction shall hear the debtor.
(3) the Creditor has no right to initiate process of insolvency of the debtor if the last is in process of restructuring.
(1) the Creditor can submit the action for declaration only after the prior notice of the debtor.
(2) the Prior notice is considered performed if the debtor before submission of the action for declaration was informed by the legal executive, or the creditor, or, in the cases which are directly provided by the Tax code, authorized bodies about the direction for execution of writ of execution or other equivalent document according to the procedure which is directly provided by the Executive code.
(3) the Creditor who imposed requirements according to Article 131 after initiation of process of insolvency shall not prove the prior notice.
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The document ceased to be valid since September 14, 2020 according to the article II of the Law of the Republic of Moldova of July 16, 2020 No. 141