Decree on recovery of farming enterprises to encourage out-of-court settlements

VITEBSK, 24 October (BelTA) – The decree on the financial recovery of struggling farming enterprises will help creditors and debtors to meet each other halfway, Deputy Chairman of the Belarusian Supreme Court Yuri Kobets told reporters on 23 October, BelTA has learned.

“The position of the Supreme Court is the following: parties should avoid going to court whenever it is possible. In order to implement Decree No. 399 we should encourage business and administrative initiative of executives at the local level, because they know better what should be done to make their company prosper. The document does not envisage endless court proceedings but one – a possibility to appeal the final decision. Apart from that, the decree will give both creditors and debtors multiple opportunities to look for and find compromises,” Yuri Kobets said.

In a situation when parties exhausted all financial recovery instruments provided by the decree, an agricultural enterprise might be liquidated as a legal entity; however, it does not mean that production facilities will be shut down. Employees will keep working, but on different terms.

A seminar to discuss instruments and mechanisms of financial recovery of agricultural enterprises envisaged by Decree No. 399 took place at the Vitebsk Oblast Executive Committee on 23 October. The document sets out a number of basic tools and mechanisms to help insolvent enterprises get back into the black. The list of struggling agricultural companies to undergo financial recovery procedures is to be elaborated by 6 April 2019.

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