Legal encyclopedia. Letter K

COMPETITIVE PRODUCTION

- a bankruptcy procedure applied to a debtor declared bankrupt in order to meet the creditors' claims in a proportionate manner.

The discovery of KP comes with the adoption by the arbitration court of a decision on the recognition of the debtor bankrupt and lasts 1 year. The term can be extended at the request of the person participating in the case for no more than 6 months.

When deciding whether to open the KP, the arbitral tribunal shall approve the bankruptcy trustee, which is valid until the date of the completion of KP

The property of the debtor at the time of the discovery of KP and revealed during the KP is a competitive mass. All funds received during the course of the transfer are credited to the debtor's main account, and payments to creditors are made from it.

Priority of repayment of creditors' claims:

1) settlements on the claims of citizens to whom the debtor is liable for causing harm to life or health, by paying off time-based payments, as well as compensation for non-pecuniary damage;

2) calculations for the payment of severance pay and wages for persons who work or worked under an employment contract, as well as on the payment of royalties;

3) settlements with other creditors.

Out of turn at the expense of the bankruptcy mass are paid:

1) court costs of the debtor;

2) expenses related to the payment of remuneration to the arbitration administrator, the registrar;

3) current utility and operational payments necessary to carry out the activities of the debtor;

4) claims of creditors that arose in the period after the arbitration court made an application to declare the debtor bankrupt and until the debtor was declared bankrupt, as well as claims on monetary obligations that arose during the course of the criminal proceedings;

5) wage arrears, which arose after the arbitration court accepted an application to declare the debtor bankrupt, as well as the remuneration of the debtor's employees accrued for the period of KP;

6) other costs associated with the conduct of the CP

In the course of KP, the bankruptcy administrator submits a report on his activities to the creditors 'meeting or to the creditors' committee, information on the financial status of the debtor and his property at the time of the opening of KP and during the KP at least once a month, if Not specified otherwise.

The report of the bankruptcy commissioner must contain information:

1) on the formed competitive mass;

2) the amount and sources of funds received on the debtor's main account;

3) on the sale of the debtor's property;

4) the number and total amount of claims for recovery of debts;

5) on measures to ensure the safety of the debtor's property;

6) on measures to invalidate the debtor's transactions;

7) on keeping a register of creditors' claims;

8) the number of employees of the debtor;

9) on the work conducted by the bankruptcy trustee to close the accounts of the debtor and its results;

10) the amount of expenses for the conduct of the PC;

11) on bringing to the secondary responsibility of third parties who bear subsidiary responsibility for the obligations of the debtor in connection with bringing it to bankruptcy;

12) other information about the course of K.P.

In the course of KP, a transition to external management is possible, if no financial recovery and (or) external management has been introduced with respect to the debtor, and during the course of the transfer, the bankruptcy trustee has reason to believe that the debtor's solvency can be restored. In this case, a petition is sent for the termination of the KP and the transition to external management.

After completion of settlements with creditors, when the bankruptcy proceedings are discontinued, the bankruptcy administrator is required to submit to the arbitration court a report on the results of the tender

Production, to which are attached:

1) documents confirming the sale of the debtor's property;

2) the register of claims of creditors indicating the amount of canceled claims of creditors; 3) documents confirming the repayment of creditors' claims.

In the event that the property of the debtor remains after the completion of settlements with creditors, the bankruptcy administrator shall notify the local government at the location of the property of the debtor about this property, which shall, no later than 30 days from the date of receipt of the notification, take property to the balance sheet and bear all costs for it Content.

After consideration by the arbitration court of the report of the bankruptcy commissioner, the arbitral tribunal shall issue a ruling on the completion of the bankruptcy proceedings, and in the event of the repayment of creditors' claims, the decision to terminate the proceedings in the bankruptcy case.