The purpose of the present Law shall be the regulation of relations in the field of insolvency of legal entities and natural persons, as well as individual entrepreneurs.

The present Law shall not apply to state institutions and other non-profit organizations, with the exception of legal entities operating in the form of a consumer cooperative or public fund.

The legislation on insolvency shall consist of present Lawand other acts of legislation.

Where an international treaty of the Republic of Uzbekistan stipulates other rules than those provided for by the legislation of the Republic of Uzbekistan on insolvency, then the rules of the international treaty shall apply.

The following basic concepts shall be applied in this Law:

bankrupt means a debtor recognized as insolvent on the basis of a court decision, in respect of whom the procedure of liquidation proceedings or the sale of property is applied;

homogeneous creditors mean a group of creditors who have uniform claims against the debtor and do not have an advantage over each other in satisfying them;

settlement agreement means an agreement of the parties to terminate the insolvency proceedings on the basis of mutual concessions;

creditors mean legal entities or natural persons to whom the debtor is liable for monetary obligations and (or) the fulfillment of duties on taxes and fees, with the exception of citizens to whom the debtor is liable for causing harm to life or health, as well as the founders (participants) of the debtor which is a legal entity liable for obligations arising from such participation;

representative of a meeting of creditors or a committee of creditors means a person authorized by a meeting of creditors or a committee of creditors to participate in an insolvency case;

monitoring procedure means the procedure applied by the court in an insolvency case to a debtor which is a legal entity, from the date of acceptance of an application for declaring a debtor insolvent until the next procedure in order to ensure the safety of its property, analyze the financial condition of the debtor, draw up a register of creditors' claims and hold the first meeting of creditors;

procedure for the sale of property means a procedure used in the framework of an insolvency case to adequately satisfy the claims of creditors in relation to a natural person;

moratorium means suspension of the execution by a debtor which is a legal entity of monetary obligations and (or) duties on taxes and fees;

monetary obligation means the obligation of the debtor to pay the creditor a certain amount of money under a civil law contract, as well as on other grounds;

taxes and fees mean obligatory payments which are paid to the State budget of the Republic of Uzbekistan and (or) state trust funds;

false insolvency means causing damage to creditors as a result of an announcement by a legal entity and a natural person, as well as an individual entrepreneur of the impossibility of fulfilling obligations under monetary obligations and (or) fulfilling duties on taxes and fees in full, knowing about their economic solvency for their fulfillment;

judicial manager (temporary manager, rehabilitation manager, external manager, liquidation manager, financial manager) means a person appointed by the court to conduct insolvency proceedings and who is a member of a public association of judicial managers;

judicial rehabilitation procedure means a procedure applied by the court to a debtor which is a legal entity to restore its solvency and pay off debts to creditors, without transferring the authority to manage the debtor's affairs to the rehabilitation manager;

pre-judicial rehabilitation means measures taken by the founders (participants) or the owner of the debtor's property which is a legal entity, creditors and other persons to restore the solvency and prevent the debtor's insolvency;

external management means the procedure for restoring solvency, applied by the court to the debtor which is a legal entity for its financial recovery, with the transfer of authority to manage the affairs of the debtor to an external manager;

liquidation proceedings means a procedure applied by the court to the debtor in order to adequately satisfy the claims of creditors and declare the debtor free from obligations and liquidate it, with the exception of a case on the insolvency of a natural person;

insolvency means the inability of the debtor recognized by the court to fully satisfy the claims of creditors for monetary obligations and (or) fulfill their duties on taxes and fees;

procedure for restoring solvency means a procedure applied by the court to a debtor which is a legal entity, that includes judicial rehabilitation or external management and provides for the implementation of measures aimed at restoring its solvency;

concealment of insolvency means causing damage to creditors as a result of the submission by a legal entity and a natural person, as well as an individual entrepreneur of information and documents that do not correspond to reality, distortion of financial statements or other deliberate concealment of one's insolvency;

debtor means legal entities and natural persons, as well as individual entrepreneurs who are not able to satisfy the claims of creditors for monetary obligations and (or) fulfill their duties on taxes and fees;

representative of the founders (participants) of the debtor or the owner of the property means a person authorized by the founders (participants) or the owner of the debtor's property in the course of the insolvency proceedings;

representative of the debtor's employees means a person authorized by the debtor's employees to represent their interests during the insolvency procedure;

debt restructuring procedure means a procedure used in the framework of an insolvency case to restore solvency in relation to a natural person and satisfy creditors' claims;

deliberate insolvency means the deliberate creation or increase of insolvency committed by a person who is a member of the management body of a legal entity, a founder (participant) or owner of a legal entity, as well as a natural person or an individual entrepreneur in the personal interests or interests of other persons;

agricultural enterprise means an agricultural cooperative, a farm and a dehkan farm with the formation of a legal entity, as well as other legal entities whose main activity is the production of agricultural products;

city-forming and equivalent enterprise means a legal entity whose employees make up at least half of the population of the corresponding settlement with taking into account their family members, or the number of employees is at least three thousand people, or which ensures the maintenance of the defense capability and security of the state, as well as of strategic importance or is a subject of natural monopolies.

Current payments shall be deemed monetary obligations and (or) taxes and fees that have arisen since the date of commencement of the insolvency proceedings.

Creditors' claims for current payments shall not be reflected in the register of creditors' claims.

Satisfaction of creditors' claims for current payments in the course of insolvency proceedings shall be carried out in accordance with the first part of Article 150 of this Law.

Signs of insolvency shall be deemed:

temporary insolvency — the inability of the debtor to satisfy the claims of creditors for monetary obligations and (or) to fulfill their obligations for taxes and fees as of the date of applying to the court, if the debtor has not fulfilled the relevant obligations within three months from the date of occurrence, and by the city-forming enterprise and enterprises equated to it — not fulfilled within six months;

permanent insolvency — if the debtor's obligations exceed the value of their assets on the date of filing an application with the court and in the reporting period at the beginning of the year in which the application was filed, and in the reporting period at the beginning of the previous year, if the application was filed by the debtor in the first quarter of the year.

The rules provided for by this article shall not apply when considering cases of insolvency in a simplified procedure, insolvency of natural persons, as well as an individual entrepreneur.

The insolvency case shall be considered by the court.

The insolvency case in accordance with Article 7 of this Law shall be considered by the court on the basis of an application of a person (body) entitled to apply to the court at the place of state registration of the debtor which is a legal entity, as well as at the place of residence of a natural person and (or) an individual entrepreneur.

Cases on the insolvency of the debtor shall be considered by the court according to the rules provided for by the Economic Procedure Code of the Republic of Uzbekistan, with taking into account the special considerations established by this Law.

The debtor itself and the creditor shall have the right to apply to the court to initiate insolvency proceedings against the debtor in connection with the failure to fulfill monetary obligations.

The debtor and the creditor may indicate in the application for initiation of insolvency proceedings the need to apply procedures for restoring the debtor's solvency or liquidation proceedings.

The debtor itself, the state tax authorities shall have the right to apply to the court with an application for initiation of insolvency proceedings against the debtor in connection with his failure to fulfill its duties on taxes and fees, as well as the authorized state body for insolvency cases and its territorial departments (hereinafter referred to as authorized state body) in relation to legal entities in the authorized capital (charter fund) of which there is a state share and (or) debt to the Republic of Uzbekistan for monetary obligations.

The debtor shall have the right to apply to the court with an application to initiate an insolvency case if there are signs provided for in the first part of Article 5 of this Law.

The debtor, which is a legal entity, shall apply to the court with an application for initiation of insolvency proceedings against them on the basis of the decision of the founders (participants) or the owner of the property or the decision of the body authorized by the owner of the property, unless otherwise provided by this Law.

The head of the debtor, which is a legal entity, the debtor, which is a natural person or an individual entrepreneur shall be obliged to apply for initiation of insolvency proceedings against the debtor to the court in cases where:

satisfaction of the claims of one or several creditors leads to the impossibility of the debtor to fulfill in full its monetary obligations to other creditors and (or) duties on taxes and fees;

body authorized to adopt a decision on the liquidation of the debtor in accordance with the constituent documents of the debtor, adopted a decision to apply to the court with the debtor's application for liquidation;

foreclosure on the debtor's property may render the debtor's economic activities impossible or lead to non-satisfaction of the claims of other creditors.

Where, during the liquidation of a legal entity, it becomes clear that it is impossible to satisfy the claims of creditors in full, the liquidation commission or the liquidator shall be obliged to apply to the court with an application to initiate insolvency proceedings against the debtor.

The application of the debtor, the liquidation commission or the liquidator must be sent to the court no later than one month from the moment the circumstances specified in parts one and two of this Article arise.

Failure by the head of the debtor, members of the liquidation commission or the liquidator to file with the court an application for initiation of insolvency proceedings against the debtor shall entail subsidiary liability of the head of the debtor, members of the liquidation commission or the liquidator for monetary obligations and (or) obligations for taxes and fees of the debtor that arose after the expiration of the period, provided for by paragraph three of Article 9 of this Law.

In case of detection of signs of insolvency, the state tax authorities, the bodies of state statistics shall be obliged to submit to the authorized state body information on enterprises with a state share in the authorized fund (authorized capital), as well as other information on the economic viability of enterprises at the request of the authorized state body.

When applying insolvency procedures, the interests of all creditors shall be protected by a meeting of creditors or a committee of creditors. From the date of acceptance by the court of an application for initiation of insolvency proceedings against the debtor, creditors shall not be entitled to apply to the debtor in order to satisfy their claims individually.

All actions performed in relation to the debtor shall be carried out by a meeting of creditors or a committee of creditors on behalf of the creditors.

A representative of the debtor's employees, a judicial manager, a representative of the founders (participants) of the debtors or the owner of the debtor's property shall participate in the meeting of creditors or the committee of creditors without voting rights.

In cases where a single creditor is involved in the insolvency case, the adoption of decisions related to the exclusive competence of the meeting of creditors shall be carried out by those creditor.

The exclusive competence of the meeting of creditors shall include the adoption of:

decisions to conclude a settlement agreement;

decisions on the election of members of the creditors' committee, determination of its quantitative composition and early termination of their powers;

decisions to apply to the court with a petition for the introduction of a judicial rehabilitation or external management procedure, the extension of their term or early termination;

decision to apply to the court for declaring the debtor bankrupt and initiating liquidation proceedings or declaring the debtor bankrupt and initiating liquidation proceedings without suspending its activities;

decisions on approval of the plan of judicial rehabilitation and approval of the debt repayment schedule;

decision to approve the external management plan.

The rules provided for by part five of this Article shall not apply when considering cases of insolvency of natural persons.

Decisions provided for in paragraphs four and five of part five of this Article, referred to the exclusive powers of the meeting of creditors, may be adopted on the basis of the opinion of a temporary manager on the financial condition of the debtor, provided for in part three of article 86 of this Law.

If the meeting of creditors adopts a decision to declare the debtor bankrupt and start liquidation proceedings, the court, with taking into account the opinion of the temporary manager on the possibility of restoring the debtor's activities, shall have the right to introduce in relation to the debtor one of the procedures for restoring its solvency.

The organization and conduct of the meeting of creditors shall be carried out by the judicial manager.

The meeting of creditors shall be deemed competent provided that it is attended by creditors with the right to vote, presenting claims in the amount of not less than two thirds of the total amount of monetary obligations and (or) obligations for taxes and fees of the debtor. Creditors may also participate in the meeting through their representatives. In the absence of a quorum, a repeated meeting of creditors shall be convened within ten days, which shall be competent regardless of the number of creditors represented at it, provided that they were duly notified of the date, time and place of the meeting of creditors.

The creditor shall have the right to appeal against the decision of the court that violates their rights and legitimate interests, the decision of the meeting of creditors, the actions (inaction) of the judicial manager, as well as the refusal of the judicial manager to satisfy their claims during the period of the procedure of their insolvency.

Homogeneous creditors shall be divided into the following groups:

the first — creditors for the debtor's obligations secured by a pledge;

the second — creditors for claims against the debtor arising from contracts not secured by pledge, contracts for the supply, performance of work and provision of services, as well as from contracts for compulsory insurance and insurance of bank loans;

the third — creditors for taxes and fees;

the fourth — creditors for remuneration and payment of compensation under employment contracts, executive documents providing for the transfer or release of funds from the account to satisfy claims for the recovery of alimony, for the payment of remuneration under copyright agreements, ensuring equal fulfillment of the debtor's obligations for payments and claims arising from labor and legal relations equivalent to them, as well as the claims of citizens for compensation for damage caused to their property as a result of a criminal or administrative offense;

fifth — the owners of the shares of the debtor on accrued dividends.

Creditors of the first, second and third groups shall have the right to vote at the meeting of creditors when considering the issues specified in paragraphs two and three of part five of Article 12 of this Law.

Creditors of the first and second groups shall have the right to vote at the meeting of creditors when considering the issues specified in paragraphs four , five , six and seven of part five of Article 12 of this Law.

A creditor shall have the right to vote at a meeting of creditors if they are holders of recognized claims against the debtor.

Proper notification shall be understood as sending to a creditor, the relevant authorized body, as well as to another person who, in accordance with Article 12 of this Law, shall have the right to participate in a meeting of creditors, a notice of a meeting of creditors by post no later than two weeks before the date of the meeting of creditors or sending in another way, ensuring receipt of such a message at least five days before the date of the meeting of creditors.

If it is impossible to identify the information necessary for the personal notification of the creditor or other person entitled to participate in the meeting of creditors, or if there are other circumstances that preclude the possibility of personal notification of the said persons, the publication of a notice on holding a meeting of creditors in the manner determined by the Cabinet of Ministers of the Republic of Uzbekistan, and in the mass media determined by it shall be deemed proper notification.

The notice of the meeting of creditors must contain the following information:

name and location of the debtor which is a legal entity;

date, time and place of the meeting of creditors;

agenda of the meeting of creditors;

procedure for familiarization with the materials subject to consideration by the meeting of creditors;

procedure for registering participants in the meeting of creditors;

surname, name, patronymic and place of residence of the debtor who is an individual entrepreneur or natural person.

The judicial manager must create an opportunity for creditors to familiarize themselves with the materials to be considered at the meeting of creditors not less than three working days before the date of the meeting.

The meeting of creditors shall be convened at the initiative of the judicial manager or at the request of the committee of creditors or at the request of creditors whose claims for monetary obligations and (or) obligations for taxes and fees amount to not less than one third of the total amount of claims for monetary obligations and (or) obligations for taxes and fees entered in the register of creditors' claims, or at the initiative of one third of the total number of creditors.

The request to hold a meeting of creditors must formulate the items to be included in the agenda of the meeting of creditors.

The judicial manager shall not be entitled to make changes to the wording of the items on the agenda of the meeting of creditors convened at the request of the committee of creditors or creditors specified in part one of this Article.

The meeting of creditors at the request of the committee of creditors or creditors referred to in the first part of this Article shall be convened by the judicial manager within a period not later than thirty days from the date of filing a relevant application with the judicial manager.

The meeting of creditors shall be held at the location (residence) of the debtor, unless otherwise established by the meeting of creditors or the committee of creditors. If it is impossible to hold the first meeting of creditors at the location (residence) of the debtor, the place of holding the first meeting of creditors shall be determined by the judicial manager.

Protocol shall be recorded at the meeting of creditors.

The protocol of the meeting of creditors must be accompanied by:

register of creditors' claims as of the date of the meeting of creditors;

documents confirming the powers of creditors' representatives;

registration lists of participants of the meeting of creditors;

materials submitted to the participants of the meeting of creditors for review and (or) approval;

evidence of proper notification of creditors and relevant authorized bodies about the date, time and place of the meeting of creditors;

voting ballots;

other documents at the discretion of the judicial manager or by the decision of the meeting of creditors.

The protocol of the meeting of creditors and the documents attached thereto shall be submitted to the court no later than two days from the date of the meeting of creditors.

Decisions of the meeting of creditors on items put to the vote shall be adopted by a majority of votes of the number of creditors present at the meeting and having the right to vote.

Each creditor having the right to vote shall have the number of votes in proportion to its share in the total accounts payable on the date of the meeting of creditors.

The meeting of creditors shall adopt by a majority vote of all creditors with the right to vote:

decision to conclude a settlement agreement;

decision to apply to the court with a petition for the introduction of a judicial rehabilitation or external management procedure, the extension of their term or early termination;

decision to apply to the court with a petition for declaring the debtor bankrupt and initiating liquidation proceedings;

decision to apply to the court for the appointment, replacement or dismissal of a judicial manager.

If there is not the necessary quorum of creditors with the right to vote at the meeting of creditors, for the adoption of the decisions provided for in paragraph three of this article, a repeated meeting of creditors shall be convened, which is authorized to adopt such decisions by a majority of votes from the number of creditors with the right to vote and present at the meeting, provided that the creditors were duly notified of the date, time and place of the meeting of creditors.

A decision of a meeting of creditors adopted in violation of the requirements of this Law and other legislative acts and violating the rights and legitimate interests of creditors may be declared invalid by a court upon the application of a creditor who did not participate in the voting or voted against this decision.

Such a decision of the meeting of creditors may be declared invalid by the court if it violates the rights and legitimate interests of other persons participating in the insolvency case. The application may be filed within twenty days from the day when the creditor and (or) another person participating in the insolvency proceedings learned or should have learnt about the decision.

The decision to apply to the court with a petition for the introduction of a judicial rehabilitation or external management procedure, the extension of their term or early termination shall be considered adopted if the majority of creditors of the first and second groups voted for it. In the event that the majority of creditors of the first and second groups voted against, and also when the required number of votes was not obtained in each group, a decision to apply to the court with a petition to declare the debtor bankrupt and start liquidation proceedings shall be adopted.

The creditors of each group who have the right to vote shall have equal rights to participate in voting.

The register of creditors' claims shall be maintained by the judicial manager.

Recording of creditors' claims in the register of creditors' claims shall be carried out in the national currency of the Republic of Uzbekistan. Creditors' claims expressed in foreign currency shall be recorded in the register of creditors' claims at the official exchange rate of the Central Bank of the Republic of Uzbekistan as of the day of the meeting of creditors in the manner prescribed by legislation, unless otherwise provided in the agreement concluded between the creditor and the debtor. The register of creditors' claims shall contain information about each creditor, the established amount of their claims for monetary obligations and (or) obligations for taxes and fees, the order of satisfaction of each of their claims.

In the statement of claims, the creditor shall be obliged to indicate information about themselves, including the full company name, location (postal address), e-mail address (upon availability), personal identification number of a natural person, as well as bank details (upon availability).

A person whose claims are included in the register of creditors' claims must notify the judicial manager within one week of changes in information about them, as well as changes in the size and content of their claims against the debtor, including assignment of claims to third parties. If such information is not provided or is not provided in a timely manner, the judicial manager and the debtor shall not be liable for the damage caused in connection with this.

Creditors should be provided with the opportunity to familiarize themselves with the register of creditors' claims. At the request of a creditor or their representative, within five working days from the date of receipt of such request, the judicial manager shall be obliged to send to this creditor or their representative an extract from the register of creditors' claims on the amount, composition and order of satisfaction of their claims. The costs of preparing and sending such an extract shall be borne by the creditor.

Disagreements arising in the course of compiling the register of creditors' claims shall be considered by the court.

The Committee of Creditors shall represent the interests of creditors and exercise control over the actions (inaction) of judicial managers.

The committee of creditors shall include representatives of creditors in the number determined by the meeting of creditors.

If the number of creditors is less than twenty, the decision of the meeting of creditors may provide for the assignment of the functions of the committee of creditors to the meeting of creditors.

In order to carry out the functions assigned to it, the creditors' committee shall have the right to:

require the judicial manager to provide information about the financial condition of the debtor and the course of the insolvency procedure;

appeal to the court the actions (inaction) of the judicial manager;

elect a representative to participate in the insolvency case;

carry out other actions provided for by this Law and the plan of judicial rehabilitation or external management.

The Committee of Creditors shall have the right to adopt decisions:

on convening a meeting of creditors;

on recommending to the meeting of creditors to apply to the court for the appointment, replacement and dismissal of a judicial manager;

on approval or refusal to approve major transactions of the debtor and transactions of the debtor in which there is an interest.

When resolving issues at a meeting of the creditors' committee, each member of the creditors' committee shall have one vote. The transfer of voting rights by a member of the creditors' committee to another person shall not be allowed.

Decisions of the creditors' committee shall be adopted by a majority vote of the total number of members of the creditors' committee.

A representative of the debtor's employees, a judicial manager, a representative of the founders (participants) or the owner of the debtor's property may take part in meetings of the creditors' committee without the right to vote.

Members of the creditors' committee shall be elected by the meeting of creditors for the period of judicial rehabilitation, external management and liquidation proceedings. By decision of the meeting of creditors, the powers of all members of the creditors' committee may be terminated earlier. Such a decision may be adopted with respect to all members of the creditors' committee simultaneously.

Candidates who receive the largest number of votes shall be considered elected to the committee of creditors.

The members of the creditors' committee may elect the chairperson of the creditors' committee from among their members.

If there are more than five members in the creditors' committee, then the chairperson of the creditors' committee shall be elected without fail.

Interested parties in relation to the debtor which is a legal entity shall be:

a legal entity that is parent or dependent in relation to the debtor in accordance with the legislation;

head of the debtor, as well as persons who are members of the supervisory board, the collegiate executive body, the chief accountant (accountant), including in cases of termination of the employment contract with them within one year before the initiation of insolvency proceedings;

founders (participants) of a legal entity or the owner of the debtor's property.

An interested person with respect to a natural person, including a debtor who is an individual entrepreneur, in this Law shall be meant their spouse, relatives in a direct ascending and descending line, sisters, brothers and their relatives in a descending line, parents, sisters and brothers of the spouse.

Interested parties in relation to judicial managers, creditors shall be determined in accordance with parts one and two of this Article.

Persons with a higher education, work experience of not less than two years, as well as those who have passed attestation in an authorized state body, may be appointed as judicial managers.

A judicial manager may also be a lawyer who meets the requirements of part one of this article and has a license specializing in conducting civil and economic court cases.

The following may not be appointed as judicial managers:

interested parties in relation to the debtor or creditors;

persons with an incomplete or unexpunged conviction record;

persons recognized by the court as incapable;

individual entrepreneurs or natural persons in respect of whom the insolvency procedure has been introduced;

persons who earlier, while performing the duties of a judicial manager, caused damage to the debtor, creditors and did not compensate for those damage;

persons whose term of validity of the certificate of a judicial manager was terminated (annulled) and (or) temporarily suspended (for the period of temporary suspension of the validity of the certificate of a judicial manager) by decision of the authorized state body;

persons in respect of whom there are restrictions on the implementation of activities for managing the affairs and (or) property of other persons (persons deprived of the right to engage in such activities).

The court, according to the grounds specified in paragraph three of this article, shall refuse to appoint a candidate recommended for the judicial manager or release the judicial manager from performing duties if there is evidence submitted by the persons participating in the insolvency case.

The judicial manager must, within ten days from the date of their appointment by the court as judicial manager, insure their liability for the event of harm to the persons participating in the insolvency case.

The requirements specified in paragraph five of this Article shall not apply to judicial managers implementing the simplified insolvency procedure.

The meeting of creditors shall have the right to demand that the judicial manager conclude an insurance contract for the debtor's property.

The judicial manager shall have the right to:

convene a meeting of creditors;

demand the convocation of a committee of creditors in the cases provided for by this Law;

apply with claims and other applications to the court without prior payment of the state fee;

receive remuneration in accordance with Article 26 of this Law;

engage other persons on a contractual basis with payment for their activities at the expense of the debtor, unless otherwise established by agreement with creditors;

to use public services, including services provided through public service centers, without making advance payments;

receive free information from natural persons and legal entities (including credit institutions) and government agencies about the property, accounts and deposits of the debtor, including its credit cards, electronic balances and electronic money transfers;

request from the debtor, who is a natural person information about its activities to implement the plan for restructuring the debt of a natural person;

for fulfilment of its obligations, to receive free information from the state tax service and customs authorities, off-budget funds, registration authorities for real estate documents and other authorized bodies that have the necessary information about the debtor enterprise and its property;

apply to the court for early termination of the performance of their duties.

The judicial manager may also have other rights in accordance with the legislation.

The judicial manager shall be obliged to:

take measures to protect the debtor's property;

form and maintain a register of creditors' claims;

analyze the financial condition of the debtor;

to provide, at the request of the creditor, within ten days, information on the financial condition of the debtor and (or) their activities;

carry out actions and take measures to identify signs of false insolvency, concealment of insolvency or deliberate insolvency and report the identification of such signs to the meeting of creditors, the court, the authorized state body, as well as law enforcement agencies;

exercise control over the implementation of the debt restructuring plan of the debtor — a natural person;

control the timely full payment of funds to fully satisfy the claims of creditors by the debtor — a natural person;

fulfill the obligations imposed by judicial acts.

The judicial manager may have other duties in accordance with the legislation.

When conducting insolvency proceedings, the judicial manager shall be obliged to act reasonably in the interests of the debtor and creditors.

If the judicial manager has caused damage to the debtor, creditors and third parties due to non-performance or improper performance of the duties assigned to them, such damage may be recovered from the judicial manager in a judicial proceeding.

Public associations of judicial managers shall be non-governmental non-profit organizations that unite judicial managers on a voluntary basis.

Public associations of judicial managers must develop and maintain the professional level of judicial managers and promote the protection of their professional interests.

Public associations of judicial managers shall:

participate in the development of draft normative legal acts regulating the activities of judicial managers;

protects the rights and legitimate interests of court administrators in their relations with state authorities and republican executive authorities;

request from state authorities and republican executive authorities the information necessary for the performance of its functions;

submit to the court a candidate for the position of a judicial manager in accordance with the procedure established by this Law;

develop and approve the rules of professional ethics of judicial managers;

carry out a rating assessment of the activities of judicial managers, monitor their compliance with the legislation, rules of professional ethics;

develop and submit for approval to the authorized state body training programs for judicial managers;

participate in certification (re-certification) of judicial managers;

study and analyze the activities of their members.

Public associations of judicial managers may also exercise other powers in accordance with the legislation.

The judicial manager shall be liable in accordance with the law for failure to perform or improper performance of the duties assigned to them.

The persons participating in the insolvency case shall have the right to demand compensation from the judicial manager for damages caused as a result of their actions (inaction).

If the failure to perform or improper performance of the duties imposed on the judicial manager in accordance with Article 23 of this Law has caused damage to the debtor or creditors, this may serve as a basis for releasing the judicial manager from the performance of their duties.

The amount and procedure for paying remuneration to a judicial manager for the performance of their function shall be established by the meeting of creditors, based on the amount of work performed, and approved by the court and paid out of the debtor's property, unless otherwise provided by agreement with creditors.

An applicant who has filed an application with the court for initiating insolvency proceedings against a natural person shall transfer to the deposit account of the court in advance funds in the amount of seven times the minimum size of labor payment for the payment of remuneration to the financial manager.

The funds transferred to the deposit account of the court shall be reimbursed at the expense of the property of the debtor, who is a natural person in the process of insolvency of a natural person in the manner prescribed by part two of Article 221 of this Law. In the absence of property of the debtor — a natural person, the remuneration to the financial manager shall be limited with the funds transferred by the applicant to the deposit account of the court, unless otherwise agreed at the meeting of creditors.

When applying the simplified insolvency procedure, unless otherwise agreed with the debtor, the costs of paying remuneration to the judicial manager shall be reimbursed by the applicant who has filed an application against the debtor to initiate insolvency proceedings. In this respect, an advance payment in the amount of seven times the minimum size of labor payment shall be made to the deposit account of the court to pay remuneration to the judicial manager. The judicial manager shall be paid remuneration for each completed case.

When insolvency is applied to a natural person and (or) the simplified insolvency procedure at the request of the state tax authority, the costs of paying remuneration to the judicial manager shall be reimbursed by the state tax authority that filed the application with the court at the expense of the State budget. In this respect, the amount of remuneration paid to the judicial manager shall be established by acts of legislation and paid in the manner prescribed by this Article.

If the costs of paying the remuneration to the judicial manager are not transferred to the deposit account of the court, the court shall return the application for initiating insolvency proceedings against the debtor.

When the debtor, who is a natural person applies to the court with an application to recognize them as insolvent, the court may postpone the transfer to the court's deposit account of the remuneration paid to the financial manager.

Disputes on the payment of remuneration to the judicial manager shall be considered by the court.

By decision of the meeting of creditors, an additional remuneration may be established for the judicial manager based on the results of their activities in cases where:

accounts payable included in the register of creditors' claims are fully repaid — in the amount of up to five percent of the amount of claims of the repaid debt;

more than seventy-five percent of creditors' claims included in the register of creditors' claims have been satisfied — in the amount of up to three percent of the amount of claims of these creditors;

more than fifty percent of creditors' claims included in the register of creditors' claims have been satisfied — in the amount of up to one percent of the amount of claims of these creditors.

The additional remuneration in the case under consideration shall not exceed half of the total amount paid to the judicial manager with respect to the given case.

If the debtor transfers from the solvency restoration procedure to the liquidation proceedings, no additional remuneration shall be paid to the judicial manager for this period.

Expenses related to an insolvency case shall be reimbursed at the expense of the debtor's property, unless otherwise provided by this Law.

In order to ensure the fulfillment of their rights and obligations, judicial managers may conduct payment to persons involved on a contractual basis, payment of court expenses, state registration of the debtor's rights to real estate, inventory, assessment of property, if necessary, expenses for using the services of an auditor, auction expenses, expenses for transfer, storage of documents, as well as other costs associated with the conduct of an insolvency case.

The amount of payment for the services of persons involved by a judicial manager in an insolvency case shall be established as a percentage of the balance sheet value of the debtor's assets (with the exception of expenses provided for in Article 26 of this Law) calculated in relation to the basis calculating amount (hereinafter referred to as the BCA), if the balance sheet value cost is:

up to a thousand BCA — in the amount of not more than twelve percent of the balance sheet value of the debtor's assets;

from one thousand to five thousand BCA — in the amount of not more than ten percent of the balance sheet value of the debtor's assets;

from five thousand to ten thousand BCA — in the amount of not more than eight percent of the balance sheet value of the debtor's assets;

more than ten thousand BCA — in the amount of not more than five percent of the balance sheet value of the debtor's assets. In this respect, expenses should not exceed two thousand two hundred times the size of the BCA.

For the purposes of this Article, the balance sheet value of the debtor's assets shall be defined on the basis of the financial statements as of the last reporting date prior to the initiation of insolvency proceedings.

In cases where it is impossible to define the actual balance sheet value of the debtor's assets, it shall be defined on the basis of the appraised value established by the appraisal organization. These rules shall not apply to judicial rehabilitation and external management procedures.

Information about the costs associated with the debtor's insolvency case shall be reflected respectively in the plan of judicial rehabilitation, external management and liquidation, as well as debt restructuring and sale of property.

Expenses associated with the sale of the pledged property shall be borne by the secured creditor, unless otherwise determined at a meeting of creditors or a meeting of a committee of creditors.

Cabinet of Ministers of the Republic of Uzbekistan shall:

approve a unified procedure for submitting claims of the Republic of Uzbekistan as a creditor in insolvency proceedings for monetary obligations and (or) obligations for taxes and fees;

approve the certification procedure, qualification and professional requirements for persons acting as judicial managers, and the procedure for maintaining a unified register of judicial managers;

approve the procedure for the activities of judicial managers;

determine the procedure for the formation and use of the rehabilitation fund;

establish the procedure for the sale of property;

approve the regulation on the authorized state body.

The Cabinet of Ministers of the Republic of Uzbekistan may exercise other powers in accordance with the legislation.

The Agency for Management of State Assets of the Republic of Uzbekistan shall be an authorized state body.

Authorized state body shall:

monitor the financial condition of enterprises, in the charter fund (authorized capital) of which there is a state share, in order to identify insolvent, unprofitable and economically insolvent enterprises and organize the formation of their electronic database;

apply to the court with an application to initiate a case on the insolvency of enterprises in the charter fund (authorized capital) of which there is a state share and (or) arrears to the Republic of Uzbekistan for monetary obligations;

conduct certification of judicial managers and maintain a unified register of judicial managers;

agree plans for pre-judicial rehabilitation, judicial rehabilitation and external management of enterprises in the charter fund (authorized capital) of which there is a state share;

exercise control over the course of pre-judicial rehabilitation and insolvency procedures of enterprises in the charter fund (authorized capital) of which there is a state share;

monitor the insolvency process;

exercise control over the activities of judicial managers in accordance with the legislation, apply to the court for the release of the judicial manager from the performance of duties if a systematic or single gross violation of the legislation is detected in their activities;

have the right to nominate candidates for judicial managers in the course of consideration of cases of a simplified insolvency procedure, as well as in the liquidation proceedings of enterprises in the charter fund (authorized capital) of which there is a state share;

impose fines on managers or other officials of enterprises, financial condition of which are monitored, for failure to provide or untimely provision of materials on the financial and economic activities of these enterprises;

exercise other powers in accordance with the legislation.

Decisions adopted by the authorised state body within the scope of its powers shall be binding on ministries, agencies, other republican executive authorities, as well as legal entities and individuals.

When considering a case on the insolvency of a debtor which is a legal entity, the following procedures shall be applied:

observation;

judicial rehabilitation;

external management;

liquidation proceedings.

When considering a case on the insolvency of a debtor who is a natural person, the following procedures shall be applied:

debt restructuring;

bankruptcy and sale of property.

When considering a case on the insolvency of a debtor who is an individual entrepreneur, the procedure of liquidation proceedings shall be applied.

Out-of-court procedures may include pre-judicial rehabilitation or voluntary liquidation (termination of activities) of the debtor.

Pre-judicial rehabilitation shall be carried out before initiation of insolvency proceedings.

In the event of the appearance of signs of insolvency, provided for in paragraph one of Article 5 of this Law, the head of the debtor shall be obliged to notify the founders (participants), the debtor's governance bodies or the owner of the debtor's property in writing.

In order to prevent insolvency, before the filing of an application with the court by the founders (participants), the debtor's governance body or the owner of the debtor's property to declare the debtor insolvent, measures shall be taken aimed at the financial recovery of the debtor. Measures aimed at the financial recovery of the debtor may also be taken by creditors or other persons on the basis of an agreement concluded with the debtor.

The object of pre-judicial rehabilitation shall be the debtor which is a legal entity.

The subjects of pre-judicial rehabilitation may be the founders (participants) of the debtor which is a legal entity, the owner of the debtor's property, state bodies and other persons.

The main measures of pre-judicial rehabilitation shall be:

full or partial redemption of overdue debts;

re-profiling of production for the manufacturing of competitive products;

attraction of highly qualified specialists;

training, retraining and advanced training of personnel;

provision of financial assistance by legal entities and natural persons interested in restoring the solvency of the debtor and continuing its activities;

agreement between the debtor and creditors aimed at reaching a consent between them on the deferment and (or) installment of payments due to creditors or a discount on debts in order to continue the activities of the debtor;

deferral of payment of taxes and fees and repayment of loans for the period of pre-judicial rehabilitation;

reorganization of the debtor which is a legal entity.

The pre-judicial rehabilitation procedure may include other measures.

Conducting pre-judicial rehabilitation with the provision of state support shall be carried out on the basis of a decision of a body authorized by the Cabinet of Ministers of the Republic of Uzbekistan.

The procedure for conducting pre-judicial rehabilitation with the provision of state support shall be regulated by legislation.

When carrying out pre-judicial rehabilitation with the provision of state support to the debtor, a rehabilitation account for sum and (or) foreign currency shall be opened in the servicing bank with the suspension of previously existing accounts. The procedure for using the rehabilitation account shall be determined by legislation.

Pre-judicial rehabilitation with the provision of state support to the debtor shall be introduced for a period of twelve to twenty-four months.

The procedure of pre-judicial rehabilitation with the provision of state support may be terminated due to the establishment of its inefficiency.

An insolvency case may be initiated by a court if there are signs provided for by paragraph one of Article 5 of this Law, except for the cases provided for by this Law.

Insolvency proceedings shall be initiated on the basis of an application from creditors, a debtor and persons authorized by this Law.

The grounds for applying to the court with an application for initiation of insolvency case and applying one of the procedures for restoring solvency shall be the temporary insolvency of the debtor.

The grounds for applying to the court with an application for initiation of insolvency proceedings against the debtor and declaring it bankrupt, as well as for the commencement of liquidation proceedings, shall be the constant insolvency of the debtor.

Evidence confirming the validity of the creditor's claims, including a court decision that has entered into legal force, evidence of recognition of these claims by the debtor, a notary's writ of execution shall be the grounds for the creditor to apply to the court to initiate insolvency proceedings against the debtor and declare it bankrupt, as well as commencement of liquidation proceedings.

The grounds for filing an application by the state tax authority to initiate insolvency proceedings against the debtor shall be the measures taken to collect debts on taxes and fees.

The persons participating in the insolvency case shall be:

debtor;

judicial manager;

creditors from the moment they present claims against the debtor in the manner prescribed by this Law;

authorized state body;

person who provided security for the obligations of the debtor.

A representative of the employees of the debtor-legal entity, a representative of the founders (participants) or the owner of the debtor's property, a representative of the debtor-individual entrepreneur, a representative of the meeting of creditors (committee of creditors) and other persons may participate in the insolvency case.

Persons participating in an insolvency case may apply to the court for an expert examination in order to identify the signs that led to false insolvency, concealment of insolvency or deliberate insolvency, in the course of any procedure applied in an insolvency case.

The debtor's application for initiation of insolvency proceedings against them shall be submitted to the court in writing or electronically and signed respectively by the head of the debtor which is a legal entity, the debtor who is an individual entrepreneur, the debtor who is a natural person or their representatives.

In the debtor's application for initiation of insolvency proceedings against them, the following must be indicated:

name of the court to which the application is submitted;

name of the applicant (surname, name, patronymic) and their location (postal address), electronic mail (upon availability);

amount of creditors' claims for monetary obligations recognized by the debtor;

amount of the debtor's arrear for compensation for harm to the life or health of employees, labor payment and severance benefits payable to the employees of the debtor;

amount of remuneration payable under copyright agreements;

amount of debt on taxes and fees;

substantiation of the inability to satisfy creditors' claims in full;

information about claims against the debtor accepted for proceedings by the courts, as well as about executive documents presented for indisputable (non-acceptance) write-off;

information about the debtor's property, including monetary funds, receivables;

numbers of bank accounts of the debtor, postal address of the bank;

list of attached documents.

The application of the debtor-individual entrepreneur about their insolvency shall also contain information about the obligations of the debtor not related to entrepreneurial activity.

The debtor shall be obliged to send a copy of the debtor's application to creditors and other persons participating in the insolvency case. If prior to the submission of the debtor's application, a representative of the founders (participants) or the owner of the debtor's property, a representative of the debtor's employees are elected (appointed), then a copy of the debtor's application shall be also sent to these persons.

The application of the debtor to initiate insolvency proceedings against them, in addition to the documents provided for by the Economic Procedural Code of the Republic of Uzbekistan, shall be accompanied by documents confirming the existence of debt, as well as the inability of the debtor to satisfy the claims of creditors in full, other circumstances that were the ground for the application of the debtor.

The debtor's application for initiation of insolvency proceedings against them shall also be accompanied by:

constituent documents of the debtor — a legal entity, documents on state registration of a legal entity or an individual entrepreneur, as well as a copy of the passport of a natural person;

list of creditors and debtors of the debtor with a breakdown of accounts payable and receivables and an indication of the location (postal address), e-mail address (upon availability) of creditors and debtors of the debtor;

balance sheet or documents replacing it of the debtor — legal entity as of the last reporting date;

documents on the composition and value of the property of the debtor, who is a natural person or an individual entrepreneur;

decision of the founders (participants) or the owner of the property of the debtor — a legal entity with respect to the debtor's application to the court to initiate insolvency proceedings against them;

minutes of the meeting of the debtor's employees at which a representative of the debtor's employees was elected to participate in the consideration of the insolvency case, if such a meeting was held prior to filing an application for initiating an insolvency case.

The original or certified copies of the documents specified in parts one and two of this article shall be attached.

The creditor's application to initiate insolvency proceedings against the debtor shall be submitted to the court in written or electronic form. The application of a creditor — a legal entity shall be signed by its head or representative, and the application of a creditor — a natural person or an individual entrepreneur — by this natural person or their representative.

The creditor's application to initiate insolvency proceedings against the debtor must contain:

name of the court to which the application is submitted;

name (surname, name, patronymic) of the applicant and their location (postal address), e-mail address (upon availability);

name (surname, name, patronymic) of the debtor and location (postal address), email address (upon availability);

amount of the debtor's monetary obligation to the creditor from which the claim arose, as well as the term for its execution;

evidence of the validity of the creditor's claims, including a court decision that has entered into legal force, evidence confirming the recognition of these claims by the debtor, a notary's executive inscription;

list of attached documents.

The creditor shall be obliged to send a copy of their application to the debtor.

A creditor's application for insolvency proceedings against a debtor may be based on a combined debt of various obligations.

Creditors shall have the right to combine their claims against the debtor and apply to the economic court with one application. Such an application shall be signed by creditors who have combined their claims.

In addition to the documents provided for by the Economic Procedural Code of the Republic of Uzbekistan, the application of the creditor to initiate insolvency proceedings against the debtor shall be accompanied by documents confirming the debtor's monetary obligations to the creditor, as well as the existence and amount of debt, in case of insolvency in a simplified procedure and insolvency of a natural person, evidence of payment of expenses for the payment of remuneration to the judicial manager shall be accompanied.

The application of the creditor, signed by the representative of the creditor, shall be accompanied by a power of attorney confirming the authority to sign the application.

The application of the creditor to initiate insolvency proceedings against the debtor shall also be accompanied by, upon availability:

decision of the court that considered the creditor's claims against the debtor;

writ of execution (writ of execution, payment claims accepted by the debtor, writ of execution by a notary, etc.) or evidence confirming the recognition by the debtor of the creditor's claims.

The application of the authorized state body to the court to initiate a case on the insolvency of an enterprise, in the charter fund (authorized capital) of which there is a state share and (or) debt to the Republic of Uzbekistan for monetary obligations, shall be submitted in writing or electronic form with accompanying the necessary documents confirming debtor's insolvency.

The application of the authorized state body shall be submitted to the court in compliance with the requirements provided for in Articles 41 and 43 of this Law.

The application of the state tax authorities and other authorized body to initiate proceedings on insolvency with respect to taxes and fees against the debtor must satisfy the requirements provided for in Articles 41 and 43 of this Law.

The application of the state tax authorities and other authorized body on initiation of insolvency proceedings against the debtor must be accompanied by evidence of the adoption of measures to pay debt on taxes and fees in accordance with the legislation.

The judge shall decide the issue of accepting an application for initiating insolvency proceedings against the debtor or refusing to accept or return an application for initiating insolvency proceedings no later than five days from the date of receipt of the application.

The judge shall accept for proceedings an application for initiating a case on the insolvency of the debtor, filed in compliance with the requirements of the Economic Procedure Code of the Republic of Uzbekistan and this Law.

When accepting an application for initiating proceedings on the insolvency of the debtor, the judge may issue a ruling on the introduction of a monitoring procedure and the appointment of a temporary manager.

The court ruling on initiating an insolvency case shall be sent by the court to the state tax bodies and other authorized bodies, to the state executor at the location (residence) of the debtor. The debtor — a legal entity shall be obliged to send copies of the ruling on initiation of a case on its insolvency to the indicated persons (bodies) at the location of the representative offices and branches of the debtor.

The judge shall refuse to accept for proceedings an application for initiation of insolvency proceedings against the debtor if the condition provided for by paragraph one of Article 37 of this Law is violated.

The judge shall return the application for initiation of insolvency proceedings against the debtor, if the application does not meet the requirements provided for in Articles 39 — 45 of this Law. In cases where filing an application is mandatory for the head of the debtor and the application is not accompanied by the documents provided for in Article 40 of this Law, such an application shall be accepted by the court, and the missing documents shall be requested within the procedure of preparation of the insolvency case for court proceedings.

The court, on the basis of the application of the person participating in the insolvency case, shall be entitled to adopt measures to secure the claims of creditors in accordance with the Economic Procedure Code of the Republic of Uzbekistan.

In addition to measures to secure the claims of creditors provided for by the Economic Procedure Code of the Republic of Uzbekistan, the court shall have the right to prohibit transactions without the consent of the judicial manager, oblige the debtor to transfer securities, currency values and other property for storage to third parties and take other measures aimed at ensuring the safety of the debtor's property .

Measures to secure the claims of creditors shall be valid until the court decides on the introduction of one of the insolvency procedures or until the court decides to refuse to declare the debtor bankrupt or until the court approves the settlement agreement.

The court shall have the right to cancel measures to secure the claims of creditors before the occurrence of the circumstances provided for by part three of this Article.

The court ruling on adoption of measures to secure the creditors' claims may be appealed (protested) by the persons participating in the insolvency case.

The debtor, within five days from the date of receipt of the court ruling on accepting the application of the creditor, the state tax authorities or other authorized body on initiating an insolvency case shall have the right to send to the court, the applicant and other persons participating in the insolvency case, a written opinion with respect to application, as well as notify of the initiation of insolvency proceedings against them of all creditors not indicated in the application, unless other rules are established by this Law.

The written opinion sent by the debtor to the court must be accompanied by evidence of sending a copy of it to the applicant and other persons participating in the insolvency case.

The written opinion on the application for initiation of insolvency proceedings against the debtor must contain the information provided for by the Economic Procedure Code of the Republic of Uzbekistan. The absence of a written opinion of the debtor shall not prevent the consideration of the insolvency case.

The preparation of an insolvency case for trial shall be carried out by a judge in the manner prescribed by the Economic Procedure Code of the Republic of Uzbekistan, with the special considerations established by this Law.

The judge shall decide on the introduction of a monitoring procedure not later than five days from the date of receipt of the application for initiation of insolvency proceedings against the debtor.

If the debtor or the temporary manager or the state tax authorities or other authorized body has objections on the creditors' claims, the judge shall verify the validity of their objections.

The verification by the judge of the validity of the objections of the debtor or the temporary manager or the state tax authorities or other authorized body shall be carried out no later than one month before the end of the established period for consideration of the insolvency case.

Based on the results of consideration of the validity of the objections of the debtor or the temporary manager or the state tax authorities or other authorized body, the court shall issue a ruling on the inclusion or refusal to include creditors' claims in the register of creditors' claims. The ruling shall indicate the amount and order of satisfaction of the creditors' claims in respect of which the objections are recognized as unsubstantiated.

A court ruling based on the results of consideration of objections to creditors' claims may be appealed (protested against). An appeal (protest) against the said ruling shall not suspend its validity.

In order to determine the financial condition of the debtor when preparing an insolvency case for court proceedings, as well as when considering an insolvency case, the court shall have the right to appoint an expert examination.

The insolvency case must be considered at a court session within a time limit not exceeding two months from the date of the issuance of a ruling on accepting for processing an application for initiating a case on the debtor's insolvency. In exceptional cases, the consideration of the insolvency case may be extended for a period not exceeding one month.

Based on the results of consideration of the insolvency case, the court shall adopt one of the following judicial acts:

decision to declare the debtor bankrupt and commence liquidation proceedings;

decision to refuse to declare the debtor bankrupt;

ruling on the introduction of the procedure of judicial rehabilitation and the extension of its term;

ruling on the introduction of the external management procedure and the extension of its term;

ruling on termination of proceedings on insolvency case;

ruling on non-consideration of the application for initiation of insolvency proceedings;

ruling on the approval of the settlement agreement.

Judicial acts on an insolvency case shall be subject to immediate execution, unless otherwise provided by this Law. A copy of the judicial act on the case of insolvency shall be immediately sent by the court to the state executor at the location (residence) of the debtor.

A court decision on declaring a debtor which is a legal entity bankrupt and initiating liquidation proceedings shall be adopted in cases where the signs of insolvency are established, provided for in part one of Article 5 of this Law, in the absence of grounds for introducing one of the restoration procedures for insolvency, approving a settlement agreement or terminating the insolvency proceedings.

The court decision on declaring a debtor which is a legal entity bankrupt and initiating liquidation proceedings must contain instructions on declaring the debtor bankrupt and initiating liquidation proceedings, appointing a liquidation manager and paying remuneration to them.

A court decision on declaring a debtor which is a legal entity bankrupt and initiating liquidation proceedings may be appealed (protested) by persons participating in the insolvency case, including any of the creditors, as well as by persons not involved in the case, with respect to whose rights and obligations the court adopted a decision.

The court decision on declaring the debtor-individual entrepreneur bankrupt and initiating liquidation proceedings shall indicate that the state registration of the debtor as an individual entrepreneur has become invalid.

Information on the rulings issued by the court on the introduction of monitoring procedures, judicial rehabilitation, external management, termination of insolvency proceedings, on the appointment, replacement or dismissal of a judicial manager, on the adoption of a decision on declaring a debtor which is a legal entity bankrupt and initiating liquidation proceedings, order on cancellation or amendments to these acts shall be published in the mass media. The list of mass media, the frequency and time limits of publication of the specified information, the prices for the services provided and the procedure for financing shall be established by the Cabinet of Ministers of the Republic of Uzbekistan.

The judicial manager, within three days from the date of receipt of the relevant judicial act, shall send the announcement provided for in paragraph 1 of this Article to the mass media.

Information about judicial acts sent for publication shall be published within three days from the date of their receipt.

Reimbursement of expenses associated with the publication of the information specified in part one of this article shall be carried out at the expense of the debtor's funds, unless otherwise provided by this Law or by a decision of a meeting of creditors or a committee of creditors. In the absence of funds from the debtor, payment for the publication of such information shall be made at the expense of the applicant who filed an application with the court for initiating an insolvency case, with subsequent reimbursement of these funds at the expense of the debtor's property.

If the debtor does not have property sufficient to reimburse the costs of publication, it shall be carried out at the expense of the applicant who applied to the court with an application to initiate insolvency proceedings against the debtor.

Information about judicial acts issued by the court may also be published in other mass media.

Information on the course of insolvency procedures shall be subject to mandatory publication in the mass media.

Reimbursement of expenses related to the publication of information on the course of insolvency proceedings shall be carried out at the expense of the debtor's property, unless otherwise provided by this Law. If the debtor does not have property sufficient to cover the costs of publication, it shall be carried out in accordance with the decision of the meeting of creditors or the committee of creditors.

If the number of the debtor's creditors is more than fifty or their number cannot be determined, information on the commencement of each insolvency procedure applied to the debtor shall also be subject to mandatory publication in the mass media.

On the basis of a decision of a meeting of creditors or a committee of creditors, information subject to mandatory publication may also be published in other mass media.

Published information on the course of insolvency proceedings must contain:

name (surname, name, patronymic) of the debtor and its location (postal address), e-mail address (upon availability);

name of the court that adopted the judicial act, the date of adoption of such a judicial act and an indication of the name of the insolvency procedure introduced, as well as the number of the insolvency case;

surname, name, patronymic of the appointed judicial manager and their postal address, e-mail address (upon availability);

date set by the court for the next court session to consider the insolvency case;

information about the possibility of applying to the judicial manager of persons who have expressed a desire to pay off the debtor's debt;

other information in cases provided for by this Law.

The decision of the court to refuse to declare the debtor bankrupt shall be adopted in the following cases:

failure to establish signs of insolvency;

satisfaction of the stated claims of creditors before the court adopts decision on the insolvency case;

establishment of false insolvency.

A court decision to refuse to declare a debtor bankrupt may also be adopted in other cases provided for by this Law.

If there is evidence indicating that the debtor has a sufficient amount of liquid property, the court shall be entitled, at the debtor's request, to postpone the consideration of the insolvency case, suggesting that the debtor pay off the creditors' claims within the period established by the court, which cannot exceed thirty days.

The adoption by the court of a decision to refuse to initiate proceedings on the insolvency of the debtor shall be the ground for the termination of all restrictions that are a consequence of the acceptance of an application to initiate proceedings on the insolvency of the debtor and (or) the introduction of a monitoring procedure.

The court shall terminate the insolvency proceedings in case of:

restoration of the debtor's solvency in the course of the judicial rehabilitation procedure;

restoration of the debtor's solvency in the course of the external management procedure;

conclusion of a settlement agreement;

refusal of all creditors participating in the insolvency case from the declared claims;

satisfaction of all claims of creditors included in the register of creditors' claims in the course of any insolvency procedure.

The court may terminate the insolvency proceedings in other cases in accordance with the law.

The judicial manager within three working days from the date of issuance of the court ruling on termination of the proceedings on the insolvency case shall notify the state tax authorities of this ruling in writing.

Proceedings on the insolvency case may be suspended on the grounds provided for by the Economic Procedure Code of the Republic of Uzbekistan.

Suspension of insolvency proceedings shall not prevent the court from considering applications and complaints against the actions (inaction) of the judicial manager, as well as those with respect to disagreements regarding the size, composition and order of satisfaction of creditors' claims.

In the event of suspension of proceedings on the insolvency case, the court shall not be entitled to adopt judicial acts provided for by paragraph one of Article 51 of this Law.

Suspension of proceedings on an insolvency case shall not be an obstacle for the court to issue rulings provided for by this Law, as well as for the judicial manager and other persons participating in the insolvency case to perform the actions provided for by this Law.

If a criminal case is initiated against the head or founders (participants) or the owner of an enterprise or an individual entrepreneur and (or) a natural person for actions (inaction) that led to insolvency, the insolvency proceedings shall be suspended until the court adopts a decision on the initiated criminal case.

Court expenses, including the costs of the state fee, the payment term of which was deferred or by installments, the costs of publishing information in the media in the order prescribed by Articles 53 and 54 of this Law, as well as the expenses of paying remuneration to judicial managers, shall be paid at the expense of the debtor's property extraordinarily.

A settlement agreement may provide for a different procedure for the distribution of expenses specified in part one of this Article.

If the court decides to refuse to declare the debtor bankrupt due to the failure to establish signs of insolvency, the expenses provided for in part one of this article shall be borne by the creditors who applied to the court with an application to initiate proceedings on the debtor's insolvency, and distributed among them in proportion to their requirements.

The procedure for the distribution of court expenses and expenses for the payment of remuneration to judicial managers shall be established in a court decision or ruling adopted on the basis of the results of consideration of an insolvency case.

Applications of the judicial manager, including on disagreements that have arisen between them and the creditors, between them and the debtor, as well as complaints of creditors about the violation of their rights and legitimate interests, filed in accordance with this Law in the course of monitoring procedures, judicial rehabilitation, external management or liquidation proceedings shall be considered by the court no later than within fifteen days from the date of receipt of the said applications and complaints. The application of the judicial manager, the complaint of the creditor must be accompanied by evidence of sending copies of them to other persons participating in the consideration of this application or complaint. Based on the results of consideration of these applications and complaints, the court shall issue a ruling. This ruling may be appealed in the manner and terms established by law.

The following shall be considered in the manner prescribed by part one of this Article,:

disagreements between the judicial manager and the representative of the debtor's employees on the amount and composition of claims with respect to labor payments and payment of severance pay to persons working under an employment contract;

complaints of creditors, representatives of the founders (participants) or the owner of the debtor's property against the actions (inaction) of the judicial manager, violating their rights and legitimate interests.

Applications and complaints filed by persons who do not have the right to appeal against a court ruling, as well as in violation of the procedure provided for in parts one and two of this article, or without attaching evidence confirming the relevant application or complaint, shall be subject to return.

A court ruling issued on the basis of the results of consideration of applications, complaints (petitions) and disagreements in an insolvency case shall be subject to revision in the manner established by the Economic Procedure Code of the Republic of Uzbekistan, with the special considerations provided for in this Article.

A court ruling issued as a result of consideration of disagreements in an insolvency case shall enter into force ten days after its issuance.

The right to file an appeal shall be granted to persons who participated in the consideration of disagreements in an insolvency case.

An appeal against a court ruling referred to in part one of this article shall be filed within ten days from the date of the court ruling on the results of consideration of disagreements and shall be subject to consideration within ten days from the date of its receipt by the court.

A cassation appeal against a ruling of the court specified in part one of this Article, which has not been considered in appeal proceedings, shall be filed within one month from the date the ruling enters into legal force and must be considered within ten days from the moment of its receipt by the court.

If there is a state share in the charter fund (authorized capital) of the debtor, the court shall notify the authorized state body of initiation of insolvency proceedings.

The authorized state body, within two weeks from the date of receipt of the notice of initiation of insolvency proceedings, shall inform the court of its attitude on the advisability or inexpediency of pre-judicial rehabilitation.

If creditors agree to conduct pre-judicial rehabilitation, the insolvency proceedings shall be subject to termination.

In case of disagreement of creditors to conduct pre-judicial rehabilitation, the insolvency proceedings shall be carried out in accordance with the procedure established by this Law.

Any transaction entered into by the debtor, including prior to the initiation of insolvency proceedings or the introduction of external management or judicial rehabilitation procedures, may be declared invalid by the court upon the application of the judicial manager on the grounds provided for by legislation.

Transactions shall be invalidated on the grounds specified in Articles 115 — 126 of the Civil Code of the Republic of Uzbekistan and provided for by this Law, if they were concluded by the debtor or their representative within three years before the initiation of an insolvency case, unless otherwise provided by this Law.

The following transactions concluded before the initiation of insolvency proceedings, in addition to the grounds provided for in part two of this Article, may be declared invalid:

low-value transactions entered into by the debtor, including transactions entered into by exchanging their goods for similar goods or donating them;

transaction, the price and (or) other conditions of which significantly worsen the position of the debtor in comparison with a transaction concluded in a similar way, and if this transaction has led to financial losses;

transaction on the transfer of property on a gratuitous or paid basis (including for temporary use) at a price different from the price for similar or the same property, and significantly worsening the condition of the debtor, even if the interests of creditors are not infringed;

transaction leading to preferential satisfaction of the claims of one creditor over others;

donation agreements of the debtor's property, with the exception of those concluded in permanent commercial transactions, if they differ significantly from agreements concluded a year before the initiation of insolvency proceedings.

A transaction entered into by a debtor which is a legal entity after the initiation of an insolvency case or within thirty-six months preceding the filing of an application for initiation of an insolvency case, related to the payment (allocation) of a share in the property to a participant in the debtor in connection with their withdrawal from the list of participants in the debtor, may be declared invalid by the court and the consequences of the invalidity of the transaction may be applied upon the judicial managerʼs or creditor's application, and all property (monetary funds) received under such a transaction shall be returned to the debtor. In this case, the participant shall be recognized as a creditor of the fourth turn in accordance with Article 150 of this Law.

A transaction made by a debtor with an interested person or other economic entity may be recognized by the court as invalid upon the application of the judicial manager if, as a result of the execution of the said transaction, the debtor and (or) creditors have suffered or may suffer losses.

A transaction entered into by a debtor with respect to individual creditor or another person after the acceptance of an application for initiating insolvency proceedings against the debtor may be declared invalid by a court if such transaction entails the preferential satisfaction of claims for the monetary obligations of the debtor of some creditors over others, upon application of the judicial manager or creditor under one of the following conditions:

transaction is aimed at ensuring the fulfillment of the obligation of the debtor or a third party to an individual creditor before the execution of the transaction;

transaction has led or may lead to a change in the order of satisfaction of creditors' claims for obligations that arose prior to the transaction;

transaction has led or may lead to the satisfaction of the claims of some creditors, the due date for which by the time of the transaction has not come, in the presence of obligations to other creditors that have not been fulfilled within the prescribed period;

if an individual creditor has been granted or may be granted more advantages in relation to the satisfaction of claims, and this leads to a violation of the order of priority for settlements with creditors provided for by this Law.

If transactions are concluded by the debtor in favor of the heirs and other legal successors interested in the disputed transaction, then these transactions may be declared invalid.

Where the transaction concluded by the debtor is declared invalid by the court and the consequences of the invalidity of this transaction are applied, the party shall be obliged to return to the other party everything received under the transaction, and if it is impossible to return what was received in kind (including when the received is expressed in the use of property, performed work or service provided) to reimburse its value in money, unless other consequences of the invalidity of the transaction are provided by law.

In this respect, the party that concluded the transaction with the debtor shall have the right to bring a claim against the debtor, the requirements of which must be satisfied in accordance with this Law.

If, in the cases provided for by this article, it is impossible to return the property in kind due to the loss, damage or unjustified acquisition of property by third parties, the original buyer of the property shall be liable to the debtor to compensate for the value of such property.

Where it is impossible to return the value of the property, the person who made the decision to alienate the debtor's property may be held subsidiary liable in the manner prescribed by this Law.

A claim for invalidation of a transaction entered into by a debtor may be filed with a court by a judicial manager on behalf of the debtor on their own initiative or by decision of a meeting of creditors or a committee of creditors, as well as by one or more creditors whose claims are included in the register of creditors.

The limitation period for a claim for invalidation of a transaction entered into by the debtor shall be calculated from the day when the judicial manager became aware or should have become aware of the existence of grounds for invalidating the transaction, provided for by this Law.

Unless otherwise provided by this Law, the following circumstances shall be recognized as the management of the debtor's affairs:

existence of the right, within three years before the appearance of signs of insolvency, to give binding instructions or the ability to otherwise determine the actions of the debtor, including the execution of transactions and the determination of their conditions;

existence of the right, in the period from the moment the signs of insolvency appear and until the court accepts an application for the debtor's insolvency, to give binding instructions or otherwise determine the actions of the debtor, including the execution of transactions and the determination of their conditions.

The persons managing the affairs of the debtor shall be:

head and members of the executive body of the debtor, the liquidation commission or the liquidator of the debtor;

persons who have the right, independently or jointly with interested parties, to dispose of fifty or more percent of the shares of a joint-stock company;

persons who have the right to dispose of more than half of the shares of the charter fund (authorized capital) of a limited liability company or other business entities;

persons who have the right to appoint (elect) the head.

If the insolvency of a legal entity is caused by unlawful actions of a person as a founder (participant) who shall have the right to issue mandatory instructions for this legal entity, or the owner of the property of the legal entity or the person managing the affairs of the debtor, then subsidiary liability may be imposed on such person for their obligations in case of insufficiency of the property of the legal entity.

Until proven otherwise, the following circumstances, determined in a judicial act, shall be considered to have led to the impossibility of full satisfaction of creditors' claims due to unlawful actions:

if significant damage has been caused to the property rights of creditors as a result of the conclusion in favor of the person managing the affairs of the debtor, or by this person of one or more transactions of the debtor (the conclusion of such transactions at the direction of this person), including the transactions provided for in Chapter 6 of this Law;

if there is a court decision that has entered into legal force on the identification by joint actions of the beneficiaries and affiliated persons of signs of false insolvency, concealment of insolvency or deliberate insolvency of the debtor;

debt arising in connection with the adoption of a judicial act on holding persons managing the debtor's affairs liable for violation of acts of legislation exceeds seventy percent of the total amount of claims included in the register of creditors' claims.

If the illegal actions of several persons managing the affairs of the debtor make it impossible to fully satisfy the claims of creditors, such persons shall bear subsidiary liability jointly and severally.

The court may release a person from subsidiary liability or reduce the amount of liability, unless it is proved that the person brought to subsidiary liability had a decisive influence on the debtor's activities.

The amount of subsidiary liability of the person managing the affairs of the debtor shall be equal to the difference between the sum of the claims included in the register of creditors' claims and the liquidation estate.

If it is proved that the amount of subsidiary liability of the person managing the affairs of the debtor is less than the amount of damage caused to the property rights of creditors through the fault of such a person, the amount of claims subject to satisfaction at the expense of this managing person may be correspondingly reduced.

If the insolvency of a legal entity has arisen due to unlawful actions of the founder (participant) or owner of the property of the legal entity, who has the right to give mandatory instructions to the legal entity, these persons shall not be entitled to participate as a head and (or) founder (participant) or owner of property in other legal entities until the debtor's obligations to creditors are repaid.

Persons participating in the insolvency case from the date of declaring the debtor bankrupt and commencement of liquidation proceedings, as well as the judicial manager, on their own initiative or in accordance with the decision of the meeting of creditors or the committee of creditors or at the direction of the authorized state body, shall have the right to apply to the court with an application for bringing to court subsidiary liability.

If there are grounds provided for in Article 70 of this Law, employees or former employees of the debtor shall have the right to apply to the court for bringing persons to subsidiary liability on the issue of uncovered debt due to insufficient property after the court has issued a ruling on the completion of the liquidation proceedings.

On the grounds provided for in Article 70 of this Law, a person entitled to file an application for bringing to subsidiary liability may apply to the court for bringing to subsidiary liability within three years from the day when they knew or should have known about the existence of relevant grounds for subsidiary liability, but no later than three years after issuance of a court ruling on the completion of the liquidation proceedings against the debtor.

A person subject to subsidiary liability on the basis of an application filed with the court in the framework of an insolvency case shall be deemed a person participating in the insolvency case.

A person brought to subsidiary liability shall have the right of recourse (recourse) against the debtor in the framework of an insolvency case, which shall be satisfied after satisfaction of all other creditors' claims included in the register of creditors' claims.

An application for bringing to subsidiary liability shall be considered by the court in accordance with the procedure established by this Chapter.

The court may refuse to bring to subsidiary liability if it is established that there is insufficient information that the person indicated in the application is the manager of debtor's affairs.

In case of initiation of a case on the insolvency of a person subject to subsidiary liability, the issue of bringing this person to liability shall be considered within the framework of the insolvency case.

When considering an application for bringing to subsidiary liability on the grounds provided for in Article 70 of this Law, it is impossible to determine the amount of subsidiary liability, the court shall issue a ruling to suspend consideration of the application until all the evidence necessary for bringing to subsidiary liability has been established and settlements with the creditor have been completed. The said ruling may be appealed (protested).

If the court, when considering an application, issues a ruling on securing a claim, measures to secure the claim shall be also in effect during the period of suspension of consideration of this application.

If, after the completion of settlements with creditors, unpaid claims of creditors remain due to the insufficiency of the debtor's property, the liquidation manager shall apply to the court to reopen the case on bringing to subsidiary liability, with attaching a report on the results of the liquidation proceedings and a decision of the meeting of creditors on the amount of unreimbursed creditors' claims.

The issue of determining the amount of subsidiary liability and the liquidation manager's report on the results of the liquidation proceedings shall be considered by the court.

The liquidation manager, within three days from the date of receipt of the judicial act that has entered into legal force on bringing the persons managing the affairs of the debtor to subsidiary liability, shall notify the creditors of the choice of the method of using the right of claim for bringing to subsidiary liability.

Within ten days from the date of receipt of such notification, the creditor shall have the right to send an application to the liquidator to choose one of the following ways of using the right to claim for bringing to subsidiary liability:

debt collection in the framework of an insolvency case;

sale of the right to claim;

waiver of the right to claim or part of it in favor of another creditor.

Within twenty days from the date of sending the notice provided for by paragraph one of this article, the liquidation manager shall send to the court a report on the results of choosing the method for using the creditors' right to claim for subsidiary liability.

The report must contain information about the choice of each creditor, the amount and order of claims.

If the creditor fails to submit an application within the period provided for by paragraph two of this article, it shall be deemed that the creditor has chosen the method provided for by paragraph two of paragraph two of this article.

By a judicial act on bringing to subsidiary liability, the court shall:

issue, in accordance with the amount of claims, a writ of execution indicating the order and amount of satisfaction of the claim provided for in article 150 of this Law to each creditor who has chosen the method provided for in paragraph three of part two of this article;

issue an executive document on insolvency in the name of the debtor as a recoverer of the remaining amount.

If the amount of claims of creditors who have chosen the method provided for in paragraph two of part two of this article exceeds the amount of claims of creditors who have chosen the method provided for in paragraphs three and four of part two of this article, the liquidation manager shall recover the debt on subsidiary liability within the framework of an insolvency case. Otherwise, the judicial manager shall convene a meeting of creditors to approve the methods of selling the right of claim and refusal in favor of another creditor.

If a writ of execution on securing the execution of a judicial act on bringing to subsidiary liability is issued in the name of the debtor as a recoverer in a case within the framework of insolvency, and its execution will lead to an excess of the period of liquidation proceedings provided for in Article 140 of this Law, the debt may be recovered by waiving the claim in favor of another person or transfer of debt to another person.

Any creditor that has a judicial act on subsidiary liability shall have the right to demand the initiation of enforcement proceedings. In the course of this enforcement proceedings, the claims of claimants shall be subject to satisfaction in the order provided for by this Law.

The monetary funds received in the course of the execution of a judicial act on bringing to subsidiary liability shall be directed to satisfy the requirements of creditors. The liquidation manager, in order to implement the requirements of this rule, shall transfer these funds to a special deposit account of the court.

After the completion of the proceedings on the insolvency case, the persons whose claims are not fully satisfied, shall have the right to apply to the court for bringing to subsidiary liability outside the scope of the insolvency case, if there are grounds for bringing to subsidiary liability.

If an application for bringing to subsidiary liability is filed in accordance with part one of this article, the following actions shall be performed when considering the application:

if the application does not indicate the persons interested in bringing the persons managing the debtorʼs affairs to subsidiary liability, the court shall leave such an application without movement and grant the applicant the right to familiarize themselves with the insolvency case in order to identify interested persons;

application shall be considered in accordance with the provisions of economic and civil procedural legislation, regardless of the number of applicants;

in a judicial act on bringing a person to subsidiary liability, the amount collected in favor of each creditor and the order in which the claims are satisfied shall be indicated;

in the executive document issued on the basis of a judicial act on bringing the persons managing the affairs of the debtor to subsidiary liability, in addition to information on the amount payable to each creditor, the court shall indicate the order of satisfaction of the claim of each creditor.

When considering an application for bringing to subsidiary liability, a settlement agreement may be concluded.

If a person brought to subsidiary liability provides information about the property, the amount of which is sufficient for the execution of a settlement agreement, this settlement agreement may be approved by the court.

A settlement agreement may be concluded only between the person who filed an application for bringing to subsidiary liability and the person brought to subsidiary liability.

The terms of the settlement agreement (including the provision of compensation, the exchange of claims for shares, stock in the charter fund (authorized capital), bonds or other shares convertible into bonds, or other securities, innovative ideas, etc.) shall be drawn up on the basis of the unanimous approval of the persons who filed applications for subsidiarity.

In case of failure to comply with the terms of the settlement agreement within the prescribed period, the creditor shall have the right to apply for a writ of execution to collect the debt to the court that considered the application for bringing to subsidiary liability.

When initiating an insolvency case, the monitoring procedure shall be introduced from the date the court accepts for proceedings an application for initiating an insolvency case against a debtor that is a legal entity, except for cases when, in accordance with this Law, a different insolvency procedure must be applied to the debtor. In the case of initiation of an insolvency case, the court ruling on accepting an application for proceedings shall indicate the introduction of a monitoring procedure.

From the moment of introduction of the monitoring procedure:

execution of enforcement documents for property recovery shall be suspended, with the exception of the execution of enforcement documents issued on the basis of judicial acts on the recovery of wage arrears, the payment of remuneration under copyright agreements, alimony, as well as on compensation for harm caused to life or health, and compensation for moral damage, entered into force until the court accepts the application for initiation of insolvency proceedings. The basis for the suspension of the execution of enforcement documents shall be a court ruling on the acceptance of an application for processing and initiation of an insolvency case;

satisfaction of the claims of the founders (participants) of the debtor which is a legal entity for the allocation of a share (stock) in the property of the debtor in connection with the withdrawal from its founders (participants) shall be prohibited;

payment of dividends and other payments on issuance securities shall be prohibited.

Claims for the receipt of monetary funds from the debtor may be presented only in compliance with the procedure for presenting claims against the debtor, established by Article 87 of this Law.

From the date of the introduction by the court of the monitoring procedure in relation to the debtor, a unilateral refusal to perform or unilateral modification of contracts by the debtor's counterparty shall not allowed, even if this is allowed by agreement of the parties.

In case of disagreement on the circumstances provided for by part three of this article, the debtor's counterparty's claim to amend or terminate the contract shall be considered by the court within the framework of an insolvency case.

The court shall have the right to refuse to amend or terminate the contract if the debtor provides evidence that they will be able to perform the contract in the course of insolvency proceedings (security of obligations by another creditor or a third party provided for by civil law can be accepted as such evidence) and elimination of the delay fulfillment of obligations under the contract.

The court shall have the right to postpone the meeting of creditors until consideration of the request for amendment or termination of the contract, if the consideration of such an issue is important for the approval of the judicial rehabilitation plan and the debt repayment schedule or the external management plan.

Termination of the debtor's financial obligations by mutual settlement of an alternative counterclaim, except for the case provided for by part eight of this article, shall be allowed only in cases where:

debtor's and the creditor's claims for monetary obligations arose before the initiation of insolvency proceedings;

monetary obligations of the debtor and the creditor arose as a result of transactions made before the commencement of the insolvency proceedings, and the period for claiming these obligations began after the commencement of the insolvency proceedings, or the date and time of the claim is not specified.

The provisions of Articles 150 and 185 of this Law shall not be taken into account when considering mutual claims. Obligations shall be considered terminated when one of the parties has declared this, starting from the entry into force of the counterclaims of the parties on the date of their compliance, that is, from the moment of expiration of the period for fulfilling the obligation, regardless of whether an application for payment has been received or accepted.

Termination of the debtor's financial obligations by mutual settlement of an alternative counterclaim shall not be allowed in cases where:

claims of the debtor (or against the debtor) for monetary obligations arose after the initiation of an insolvency case, if this would lead to a violation of the rights of creditors;

claims of the debtor (or against the debtor) for monetary obligations were acquired in bad faith before the initiation of insolvency proceedings. If the acquirer of the right to claim knew or should have known that the debtor had signs of insolvency, but acquired this right, it shall be assumed that it was acquired in bad faith. Otherwise, the proof of the fact rests with the acquirer of the right to claim.

If claims become counterclaims as a result of a change in the person in the obligation, then the time of their occurrence cannot be earlier than the date of such change.

An application for an alternative counterclaim by mutual settlement may be filed by the creditor, debtor or liquidation manager.

Disputes on the termination of monetary obligations by mutual settlement of the debtor's alternative counter claim shall be considered by the court in the manner prescribed by Article 60 of this Law.

If the terms of mutual settlements have come within six months before the initiation of insolvency proceedings, mutual settlements can be challenged only in case of bad faith of the actions of the creditor.

If the acquisition of the debtor's claims made at a price significantly lower than the cost, as well as the assumption of the obligations of a person (including by transferring a debt) without reasonable monetary compensation later became the reason for initiating an insolvency case against the debtor, this may be evidence of the bad faith of the creditor.

The introduction of a monitoring procedure shall not be grounds for dismissal of the head of the debtor and other management bodies of the debtor which shall continue to exercise their powers with the restrictions established by parts two and three of this article.

The debtor's management bodies may only with the written consent of the temporary manager conduct:

transactions related to the transfer of immovable property for rent, pledge or disposal of such property in any other way;

major transactions;

transactions related to the receipt and issuance of loans (credits), the issuance of sureties and guarantees, the assignment of claims, the transfer of debt, as well as the conclusion of an agreement on fiduciary management of the debtor's property.

The debtor's management bodies shall not be entitled to adopt decisions:

on reorganization (merger, accession, division, separation, transformation) and liquidation of the debtor;

on the creation of legal entities or on participation in other legal entities;

on the opening of representative offices and the creation of branches;

on payment of dividends or distribution of income (profit) of the debtor between its founders (participants);

on the placement by the debtor of bonds and other issuance papers, with the exception of the decision to issue shares;

on the acquisition of previously issued shares from shareholders.

A temporary manager shall be appointed by the court from among the candidates proposed by creditors or an authorized state body or a public association of judicial managers.

The court ruling on the appointment of a temporary manager must indicate the amount and procedure for paying their remuneration.

The amount of remuneration of a temporary manager may be changed by the court on the basis of a decision of the meeting of creditors.

A temporary manager shall have the right to apply to the court with an application for their release from the performance of duties.

In case of satisfaction of the petition of the temporary manager to release them from the performance of their duties, the court shall appoint a new temporary manager from among the candidates proposed by the creditors. In the event that a candidate for a temporary manager is not presented, the court shall appoint a temporary manager from among the candidates proposed by the authorized state body or a public association of judicial managers. Until a new temporary manager is appointed, the temporary manager shall continue to perform duties.

The temporary manager shall have the right to:

submit claims to the court on its own behalf for the recognition of transactions as invalid, as well as for the application of the consequences of the invalidity of void transactions concluded or executed by the debtor in violation of the requirements established by legislation;

raise objections to the fulfillment of creditors' claims during the monitoring procedure in the cases provided for in Article 79 of this Law;

take part in the verification by the judge of the validity of the submitted objections of the debtor to the claims of creditors;

file a petition with the court for taking additional measures to ensure the safety of the debtor's property, including a ban on making transactions not provided for in Article 81 of this Law without the consent of the temporary manager, on transferring property for storage to third parties, as well as on the abolition of such measures;

apply to the court with a petition to remove the head of the debtor from the performance of duties;

receive any information and documents relating to the activities of the debtor.

The temporary manager may also have other rights in accordance with the legislation.

The management bodies of the debtor shall be obliged to provide the temporary manager at their request with any information relating to the activities of the debtor.

The temporary manager shall oblige to:

take measures to ensure the safety of the debtor's property;

analyze the financial condition of the debtor;

identify the debtor's creditors and maintain a register of creditors' claims, notify creditors of the introduction of a monitoring procedure with respect to the debtor;

provide within ten days information on the financial condition of the debtor and (or) its activities at the request of the creditor;

convene and hold the first meeting of creditors.

The temporary manager may also bear other duties in accordance with the legislation.

After the end of the monitoring procedure, but not later than five days before the date of the court session, the temporary manager shall be obliged to submit to the court a report on their activities, information on the financial condition of the debtor and proposals on the possibility or impossibility of restoring the debtor's solvency, the protocol of the first meeting of creditors with documents attached provided for in Article 16 of this Law.

The temporary manager shall be obliged, within three days from the moment of appointment, to send for publication in the mass media a message on the introduction of a monitoring procedure in relation to the debtor in the manner prescribed by Article 53 of this Law.

The temporary manager shall be obliged, no later than ten days from the date of publication of the notice on the introduction of the monitoring procedure, to notify all identified creditors of the debtor, with the exception of creditors for the payment of wage arrears, of the court ruling on the introduction of monitoring in respect of the debtor.

The head of the debtor shall be obliged to notify the debtor's employees, founders (participants) or the owner of the debtor's property no later than three working days from the date of receipt of the court ruling on the introduction of a monitoring procedure in relation to the debtor.

Notification of creditors about the introduction of the monitoring procedure, with the exception of creditors for the payment of wage arrears, shall be carried out by sending a message to the creditor in a way that makes it possible to establish the date of receipt by the creditor of such a message.

Notification of creditors of claims for payment of wage arrears shall be carried out by convening and holding a general meeting of the debtor's employees.

Notification of the founders (participants) of the debtor shall be carried out by convening a general meeting of founders (participants) or sending a message to the body of a legal entity that shall have the right to convene a general meeting of founders (participants) in accordance with the legislation or constituent documents about the introduction of a monitoring procedure in relation to the debtor.

A notice on the introduction of a monitoring procedure with respect to the debtor must contain:

name (surname, name, patronymic) of the debtor, its location (postal address), e-mail address (upon availability);

name of the court which issued the ruling on the introduction of a monitoring procedure with respect to the debtor, the date of issuance of such a ruling and the number of the insolvency case;

surname, name, patronymic of the appointed temporary manager and their postal address;

date, time and place of the court session set by the court to consider the insolvency case;

other information at the discretion of the sender of the message (temporary manager or head of the debtor).

An analysis of the financial condition of the debtor shall be carried out in order to determine the sufficiency of the debtor's property to cover court costs, the costs of paying remuneration to judicial managers, as well as the possibility or impossibility of restoring the debtor's solvency.

The temporary manager shall prepare proposals on the possibility or impossibility of restoring the debtor's solvency, substantiating information on the advisability of introducing subsequent insolvency procedures, based on the analysis of the financial condition of the debtor, including the results of the inventory of the debtor's property, if available, and the analysis of documents certifying the state registration of property rights.

Based on the results of the financial analysis, the temporary manager shall draw up one of the following conclusions on the financial condition of the debtor:

on failure to establish signs of insolvency;

on the existence of grounds for the introduction of one of the procedures for restoring solvency, if signs of temporary insolvency are revealed;

on the presence or absence of the possibility of restoring solvency, if signs of permanent insolvency are revealed.

The procedure for determining the financial condition of the debtor shall be established by the Cabinet of Ministers of the Republic of Uzbekistan.

A temporary manager may involve a specialized organization to determine the financial condition of the debtor.

In order to participate in the first meeting of creditors, creditors shall have the right to present their claims against the debtor within thirty days from the date of publication of information in the mass media about the introduction of a monitoring procedure in relation to the debtor. The creditors' claims shall be sent by the creditors to the court, the debtor and the temporary manager with the attachment of a judicial act or other documents confirming the validity of these claims.

The debtor shall have the right to file their objections to the court in relation to the creditors' claims, which have grounds for recognizing them as established, if:

there is a judicial act that has entered into legal force, repealing or amending the judicial act presented by the creditor as a basis for recognizing the claims as established, as well as suspending its operation or changing the method and procedure for its execution;

there is a document that cancels or changes the document (recognition of a debt, executive inscription of a notary, etc.) presented by the creditor as a basis for recognizing the claim as established, as well as suspending its operation;

an agreement has been concluded between the debtor and the creditor on changing the terms, procedure and conditions for repaying the debt on the basis of the document submitted by the creditor as evidence of classifying the claim as established;

debtor has made full or partial repayment of the debt;

there is evidence of a change in the person in the obligation under which the claim is made.

The temporary manager shall have the right to send to the court objections to the claims of creditors recognized in accordance with this Law, if the temporary manager has sufficient grounds to believe that the actions of the debtor to recognize the debt violate the rights and legitimate interests of other creditors and (or) are unfounded.

The objections of the debtor, the temporary manager on the claims of creditors may be submitted to the court within a week from the date of receipt of the relevant claims. Claims of creditors against which objections have been received shall be considered at a court session. Based on the results of the consideration, a court ruling shall be issued to include or to refuse to include the said claims in the register of creditors' claims. The creditor's claim, against which the debtor or the temporary administrator has not filed objections within the specified period, shall be entered in the register of creditors' claims in the amount declared by the creditor.

If creditors' claims are recognized as unfounded or not supported by proper evidence, the relevant creditors' claims shall be returned. These claims may be presented in the course of subsequent insolvency proceedings.

The creditor may appeal against the decision of the temporary manager or the court on the refusal to include their claims in the register of creditors' claims.

The temporary manager determines the date of the first meeting of creditors and notifies all identified creditors, the representative of the debtor's employees, as well as other persons (bodies) entitled to participate in the first meeting of creditors. Notification of the holding of the first meeting of creditors shall be carried out by the temporary manager in the manner prescribed by Article 14 of this Law. The first meeting of creditors must be held no later than five days before the date of the court session specified in the court ruling on accepting for proceedings an application for initiating insolvency proceedings against the debtor.

Participants in the first meeting of creditors with the right to vote are creditors whose claims have been filed in accordance with the procedure provided for by paragraph one of Article 87 of this Law and have been entered in the register of creditors' claims.

In the first meeting of creditors, a representative of the founders (participants) or the owner of the debtor's property, a representative of the debtor's employees may participate without the right to vote. The absence of these persons is not grounds for declaring the meeting of creditors invalid.

At the first meeting of creditors, decisions shall be adopted on the following issues:

on applying to the court with a petition for the introduction of a judicial rehabilitation procedure or external management;

on applying to the court with a petition for declaring the debtor bankrupt and initiating liquidation proceedings;

on the number of members of the creditors' committee and their election;

on the approval of the candidature of the rehabilitation manager, external manager or liquidation manager;

on other issues provided for by this Law.

The decision of the first meeting of creditors to apply to the court for the introduction of a judicial rehabilitation procedure must contain the proposed term for the judicial rehabilitation procedure and the approved debt repayment schedule.

The first meeting of creditors that has adopted a decision to apply to the court with a petition for the introduction of a judicial rehabilitation procedure shall have the right to apply to the court with a petition for the release of the temporary manager from the performance of duties. In the said petition of the meeting of creditors, the court may be offered a candidature of the rehabilitation manager for appointment.

The decision of the first meeting of creditors on applying to the court for the introduction of an external management procedure must contain the proposed term for the external management procedure and the candidate for the external manager, as well as information about them.

The decision of the first meeting of creditors on applying to the court for declaring the debtor bankrupt and initiating liquidation proceedings must contain the proposed term for liquidation proceedings and the candidate for the liquidation manager, as well as information about them.

The court, on the basis of the decision of the first meeting of creditors, unless otherwise provided by this article, shall adopt decision on declaring the debtor bankrupt and initiating liquidation proceedings, or issue a ruling on the introduction of a judicial rehabilitation or external management procedure, or approve an settlement agreement and terminate the insolvency proceedings.

If the first meeting of creditors fails to decide on the application of one of the insolvency procedures, or if none of its decisions is submitted to the court within the period established by Article 16 of this Law, the court, if there are signs of insolvency, shall decide on declaring the debtor bankrupt and initiating liquidation proceedings, unless otherwise provided for in this article. If there are no signs of permanent insolvency, the court shall return the submitted materials for consideration at the meeting of creditors of the issue of introducing one of the restoration procedures in relation to the debtor.

If the first meeting of creditors decides to apply to the court with a petition to declare the debtor bankrupt and initiate liquidation proceedings, or if none of its decisions is submitted to the court, the court shall have the right to issue a ruling on the introduction of a judicial rehabilitation procedure at the request of the founders (participants) or the owner of the debtor's property, an authorized state body, as well as a third party (persons), provided that the applicants ensure security for the fulfillment of the debtor's obligations in accordance with the debt repayment schedule.

Prior to the appointment of a rehabilitating or external or liquidation manager, the fulfillment of their duties in full shall be assigned to the person who previously performed the duties of a temporary manager.

From the moment the court declares the debtor bankrupt and the commencement of liquidation proceedings, or the introduction of a judicial rehabilitation or external management procedure, or the approval of a settlement agreement, the monitoring procedure shall be terminated.

During the monitoring procedure, the debtor, the founders (participants) or the owner of the debtor's property, as well as a third person (persons) shall have the right to apply to the first meeting of creditors with a petition to apply to the court for the introduction of a judicial rehabilitation procedure or directly to the court with a petition for the introduction of a judicial rehabilitation procedure .

The debtor's application for the introduction of a judicial rehabilitation procedure must be accompanied by a debtor's judicial rehabilitation plan indicating the proposed term for the judicial rehabilitation procedure and the debt repayment schedule.

Persons who have applied to the meeting of creditors with a petition to apply to the court for the introduction of a judicial rehabilitation procedure shall be obliged to submit the said petition and the documents attached to it to the temporary manager no later than two weeks before the date of the meeting of creditors in order to provide creditors with the opportunity to familiarize themselves with the specified documents.

The petition of the founders (participants) or the owner of the debtor's property on the introduction of a judicial rehabilitation procedure must be accompanied by a plan of judicial rehabilitation, a debt repayment schedule, and a protocol of the general meeting of founders (participants) of the debtor. The protocol of the general meeting must contain a list of founders (participants) who voted for the introduction of the judicial rehabilitation procedure, as well as documents on that these persons ensure that the debtor fulfills the debt repayment schedule.

The petition of the third person (persons) for the introduction of a judicial rehabilitation procedure must be accompanied by a debt repayment schedule and evidence that the third person (persons) ensures that the debtor fulfills the debt repayment schedule.

When applying to the meeting of creditors with a petition to apply to the court for the introduction of a judicial rehabilitation procedure by the persons specified in part one of this article, the enforcement of fulfilling the debt repayment schedule by the debtor shall be determined by an agreement between debtor and each of them.

The debtor's fulfillment of obligations in accordance with the debt repayment schedule may be ensured in the manner prescribed by legislation.

The debtor's obligations to fulfill the debt repayment schedule shall be considered secured from the moment the court issues a ruling on the introduction of a judicial rehabilitation procedure.

An agreement on the provision of security for the fulfillment of obligations shall be concluded in writing, unless otherwise provided by law. On the part of the creditors, this agreement shall be signed by a representative of the meeting of creditors or the committee of creditors, and in the case of the introduction of a judicial rehabilitation procedure at the initiative of the court, by the rehabilitation manager, and on the other hand, by the persons who provided security for the debtorʼs fulfillment of obligations in accordance with the debt repayment schedule (hereinafter referred to as the persons who provided securities for the fulfillment of obligations).

The amount of the provided security for the fulfillment of obligations must exceed by not less than twenty percent the amount of the debtor's obligations reflected in the balance sheet as of the last reporting date and in the debt repayment schedule drawn up on the basis of claims entered in the register of creditors' claims before the meeting of creditors on the introduction of a judicial rehabilitation procedure.

Property, including property rights belonging to the debtor on the right of ownership or on other property rights, cannot serve as the subject of securing the execution by the debtor of the debt repayment schedule.

Amendments to the debt repayment schedule, as well as the introduction of a new insolvency procedure in relation to the debtor, shall not be grounds for terminating the provided security for the fulfillment of obligations.

The judicial rehabilitation procedure shall be introduced by the court on the basis of the decision of the meeting of creditors, except for the cases provided for by paragraph three of Article 92 of this Law.

The court ruling on the introduction of the judicial rehabilitation procedure must indicate the term of the judicial rehabilitation procedure, contain the debt repayment schedule approved by the court, information about the persons who provided security for the fulfillment of obligations, the amount and forms of such security, the appointment of the rehabilitation manager and the amount of their remuneration.

A court ruling on the introduction of judicial rehabilitation may be appealed (protested against). An appeal (protest) against this ruling shall not suspend its execution.

The procedure of judicial rehabilitation shall be introduced for a period not exceeding twenty-four months.

When carrying out the judicial rehabilitation procedure, the debtor's management bodies shall exercise their powers with the restrictions established by this Chapter.

At the time of the introduction of the judicial rehabilitation procedure:

previously taken measures to secure the claims of creditors shall be cancelled;

seizure of the debtor's property and other restrictions on the debtor's powers to dispose of the property belonging to it shall be imposed exclusively within the framework of the insolvency procedure;

payment of all types of current tax payments arising in the course of insolvency (with the exception of taxes on wages and payments equivalent to it) shall be suspended and paid after the expiration of the judicial rehabilitation procedure. In this case, the said tax debts shall be payable in equal installments within six months from the date of approval by the court of the report of the rehabilitation manager and the ruling to terminate the insolvency proceedings against the debtor;

forfeit (fine, penalty) and other economic (financial) sanctions for non-fulfillment or improper fulfillment of monetary obligations and for taxes and fees that arose at the time of the judicial rehabilitation procedure, as well as payable interest shall not be accrued.

Interest shall be accrued on the amount of the creditor's claims for monetary obligations and (or) taxes and fees subject to satisfaction in accordance with the debt repayment schedule in the manner and amount provided for in Article 327 of the Civil Code of the Republic of Uzbekistan. These interest shall be subject to accrual on the amount of the creditor's claims from the moment a court ruling on the introduction of judicial rehabilitation is issued and until the creditor's claim is paid off, and if such repayment has not occurred, until the decision is adopted to declare the debtor bankrupt and start liquidation proceedings.

At the petition of the meeting of creditors, persons who provided security for the fulfillment of obligations, or the rehabilitation manager, which contain information about the failure or improper performance by the head of the debtor of the plan of judicial rehabilitation or about the commission of actions (inaction) that violate the rights and legitimate interests of the debtor, creditors, persons who provided security fulfillment of obligations, the court shall have the right to remove the head of the debtor from the performance of duties. In these cases, the court shall have the right to assign the performance of the duties of the head of the debtor to the rehabilitation manager. The court shall issue a ruling on the removal of the head of the debtor from the performance of duties, which may be appealed (protested).

The founders (participants) or the owner of the debtor's property shall not be entitled, without the consent of the meeting of creditors or the committee of creditors, to adopt decisions on the reorganization (merger, accession, division, separation, transformation) and liquidation of the debtor, and the debtor shall not be entitled to make transactions:

transactions related to the lease or pledge of real estate, the contribution of the said property as a share in the charter fund (charter capital) of business entities, or the disposal of such property in any other manner;

major transactions;

related to the receipt and issuance of loans (credits), the issuance of sureties and guarantees, the assignment of claims, the transfer of debt, as well as the conclusion of an agreement on fiduciary management of the debtor's property;

in the commission of which there is an interest of the rehabilitation manager or creditors in the manner prescribed by legislation.

A court ruling on the introduction of a judicial rehabilitation procedure cannot be a basis for suspending or refusing to execute the debtor's contracts concluded before the initiation of an insolvency case. The execution of agreements concluded prior to the initiation of the debtor's insolvency proceedings, which are considered important for the continuation of the debtor's activities, shall be continued by the debtor or the rehabilitating manager, except for the cases provided for by this Law.

In this case, the agreement of the parties on the termination or refusal to execute the contracts concluded by the debtor in connection with the introduction of the judicial rehabilitation procedure in respect of the debtor shall be considered invalid, except as provided by this Law.

The rehabilitation manager and creditors shall have the right to demand that the debtor's transactions be declared invalid in the manner prescribed by legislation.

The rehabilitation manager and creditors shall have the right to demand the termination of agreements concluded after the initiation of insolvency proceedings or within twenty-four months preceding the filing of an application for initiation of insolvency proceedings against the debtor, or an agreement that has not been fully or partially performed, if one of the following circumstances exists:

execution of contracts will cause losses for the debtor and (or) violate the rights and legitimate interests of the debtor, creditors, persons who provided security for the fulfillment of obligations, in comparison with similar contracts concluded under comparable circumstances;

contract is concluded for a period of more than one year or is designed to obtain positive results for the debtor only in the long term;

contract results in preferential satisfaction of the claims of one creditor in comparison with the claims of other creditors.

The requirement to terminate contracts that have not been fully or partially performed may also be filed in the presence of other circumstances that prevent the restoration of the debtor's solvency.

The candidature of the rehabilitation manager shall be submitted to the court by the meeting of creditors or by the persons who have provided security for the fulfillment of obligations.

The rehabilitation manager shall act from the moment the judicial rehabilitation procedure is introduced and until the end of the judicial rehabilitation procedure or its early termination.

The rehabilitation manager may be released by the court at his own request or at the request of a meeting of creditors or persons who provided security for the fulfillment of obligations, as well as in other cases provided for by this Law.

The ruling of the court on the release of the Rehabilitation manager from the performance of duties with the simultaneous appointment of a new Rehabilitation manager may be appealed (protested against). An appeal (protest) against the said ruling shall not suspend its execution.

Termination of insolvency proceedings in connection with the restoration of the debtor's solvency during the judicial rehabilitation procedure shall entail the termination of the rights and obligations of the rehabilitation manager.

If a court has issued a ruling on the introduction of an external management procedure or a decision has been adopted on declaring the debtor bankrupt and initiating liquidation proceedings, and another person has been appointed as an external manager or liquidation manager, the rehabilitation manager shall continue to perform duties until the affairs are transferred to an external manager or liquidation manager.

The Rehabilitation manager shall have the right to:

demand from the head of the debtor information about the current activities of the debtor, the progress of the implementation of the measures provided for by the plan of judicial rehabilitation, and the implementation of the debt repayment schedule;

demand from the head of the debtor timely and complete transfer of funds to pay off the claims of creditors;

take part in the inventory of property if it is carried out by the debtor;

exercise control over the timely execution by the debtor of the current claims of creditors;

coordinate transactions and decisions of the debtor in the cases provided for by paragraph five of Article 96 of this Law, and provide information to creditors on these transactions and decisions;

file an application with the court to invalidate the debtor's transactions in the manner prescribed by Articles 63 , 64 and 65 of this Law;

appeal to the court the actions of the debtor to recognize the claims or confirm the grounds for recognizing the claims as established, or the debtor's inaction in terms of considering the claims of creditors in the cases and in the manner established by Articles 60 and 87 of this Law;

apply to the court with a petition to remove the head of the debtor from the performance of duties in the cases established by paragraph four of Article 96 of this Law;

request from the head, founders (participants) of the debtor and (or) state bodies information and documents related to the debtor;

to use public services, including services provided through public service centers, without making advance payments to ensure the exercise of their powers;

file a petition with the court for taking additional measures to ensure the safety of the debtor's property, including the transfer of property for storage to third parties, as well as for the cancellation of such measures.

The Rehabilitation manager may also have other rights in accordance with the legislation.

The Rehabilitation manager shall be obliged to:

maintain a register of creditors' claims;

convene meetings of creditors in the cases provided for in Article 12 of this Law;

consider reports on the progress of the implementation of the plan of judicial rehabilitation and the debt repayment schedule provided by the debtor, and submit appropriate conclusions to the meeting of creditors;

provide within ten days information on the financial condition of the debtor and (or) its activities at the request of the creditor;

provide information on the course of implementation of the plan of judicial rehabilitation to the meeting of creditors and the committee of creditors, as well as to the authorized state body, if there is a state share in the authorized capital of the debtor.

The Rehabilitation manager may also have other obligations in accordance with the law.

The plan of judicial rehabilitation shall be prepared by the head of the debtor, the founders (participants) of the debtor or the owner of the debtor's property.

The recovery plan must specify specific measures to restore the debtor's solvency.