What you need to know about rehabilitation procedure

Who is entitled to initiate the procedure:

• Debtor (upon a decision of the authorized body of the legal entity or a decision of the individual entrepreneur);

• Creditor (under civil law and other obligations).

Legal consequences of initiating proceedings and introducing the procedure: From the moment the court issues a ruling on the initiation of a rehabilitation case and the application of the procedure, the following legal consequences arise:

• Prohibition on enforcement: The execution of previously issued court decisions and executive documents regarding the foreclosure of the debtor's property is suspended (with the exception of payments for compensation of harm to life and health).

• Freezing of interest and penalties: The accrual of interest and penalties (fines, late fees) on all types of the debtor's liabilities is terminated.

• Restriction on transactions: The governing bodies of the debtor are not entitled to enter into transactions with property outside the framework of ordinary course of business without the consent of the rehabilitation manager or the creditors' meeting.

• Ban on dividend payments: Profit distribution, payment of dividends, and withdrawal of shares by participants (founders) are prohibited.