Restructuring procedure

According to the Law of the Republic of Kazakhstan "On rehabilitation and bankruptcy", a debtor may decide on restructuring their debts in case of temporary insolvency situations, provided that there are no rehabilitation or bankruptcy cases initiated by the court. The debtor shall apply to the court for debt restructuring, with the attachment of documents indicating temporary insolvency confirming temporary insolvency

From the date of court decision on application of restructuring process, the debtor is prohibited from making any transactions on the disposal of assets.

Within two months from the date of entry into force of the court decision on application of the procedure, the debtor is obliged to conclude a debt restructuring agreement with all creditors.

The debt restructuring agreement must contain provisions on the terms of agreement, the procedure, methods and deadlines to fulfill the debtor's obligations to the creditor (creditors). The debt restructuring agreement is concluded for a period of no more than three years.

Upon the approval of the debt restructuring agreement, the following consequences will occur from the date of entry into force of the court ruling:

-The accrual of forfeit (penalties, fines) for all debt types of the debtor is terminated.;

-All restrictions imposed by state bodies to the debtor's accounts are removed without making appropriate decisions by the bodies which imposed them;

-The execution of previously adopted court decisions and arbitral decisions is terminated, except for payments to citizens to whom the debtor is responsible for damage to life or health, without taking into account claims made in respect of non-pecuniary damage, that fell due and payable after the conclusion of a debt restructuring agreement;

-imposition of new arrests on the property of the bankrupt and other restrictions on disposal of assets of the bankrupt shall be allowed only on claims for recognition of the transaction null and reclamation of property from unlawful possession, applicable to the bankrupt.

In 2024, in East Kazakhstan region, in total 6 enterprises were in the restructuring procedure for a total debt of 2.3 billion tenge, currently 5 enterprises are regularly paying back their debt according to the approved debt repayment schedule, for 1 enterprise the procedure was terminated due to non-execution of a schedule.