Currently, the current legislation in the field of rehabilitation and bankruptcy supports the debtor's initiative to restore solvency and save their business. The debtor legal entity has the right to apply the rehabilitation procedure not only before the initiation of bankruptcy proceedings, but also at any stage after the initiation.
The debtor has the right to rely on the application of the rehabilitation procedure if the following conditions are met:
- the debtor has not been previously rehabilitated;
- the debtor's founders (participants) have developed a rehabilitation plan;
- the rehabilitation plan has been approved by the creditors ' meeting.
After drawing up a rehabilitation plan, the debtor should apply to the bankruptcy Manager with a request to hold a meeting of creditors.
At the stage of transition from bankruptcy to rehabilitation, the bankrupt Manager has two duties: (1) notifying creditors of the upcoming creditors ' meeting within three business days from the date of the debtor's request to hold the meeting; and (2) drawing up an opinion on the effectiveness or inefficiency of the rehabilitation plan and sending this opinion to the founders (participants) of the debtor legal entity within ten business days from the date of receipt of the plan.
If the rehabilitation plan is approved, the creditors ' meeting should also consider selecting a rehabilitation Manager or restoring the debtor's property and business management rights. Having received the consent of creditors to proceed to the rehabilitation procedure according to the plan presented at the meeting, and the conclusion of the bankruptcy Manager, the debtor (its participant, owner or authorized person) applies to the court to complete the bankruptcy procedure and apply the rehabilitation procedure, as well as approve the rehabilitation plan. The conclusion of the bankrupt Manager about the ineffectiveness of the rehabilitation plan is not an obstacle to the consideration of the application in court.
The court, having considered the debtor's application and studied the circumstances of the case, decides to satisfy the application, or refuses to satisfy it. In case of satisfaction, the earlier decision on bankruptcy of the debtor is subject to cancellation. After that, the rehabilitation procedure is carried out in accordance with the General rules on conducting the rehabilitation procedure contained in the Law of the Republic of Kazakhstan "on rehabilitation and bankruptcy".