What you need to know about rehabilitation procedure

Duration of the Rehabilitation Plan

As a general rule, the implementation period of a rehabilitation plan must not exceed five years.

Where grounds provided by law exist, the court may extend the implementation period of the plan.

When the Procedure Ends

The rehabilitation procedure is completed once the court-approved rehabilitation plan has been fully implemented and the debtor’s solvency has been restored.

If the debtor’s solvency cannot be restored, the court may decide to commence bankruptcy proceedings in accordance with the legislation of the Republic of Kazakhstan.

Why It Is Important to Use the Procedure in a Timely Manner

Timely application for a rehabilitation procedure makes it possible to:

• preserve an operating business;
• restore the enterprise’s solvency;
• retain jobs;
• settle relations with creditors;
• avoid the liquidation of the enterprise where there is a possibility of financial recovery.