State Duma has passed law "On insolvency"

On Friday at a regular plenary session the State Duma has considered in the second reading the law "On insolvency /bankruptcy/", earlier rejected by the Russian President and has passed it, taking into account the President's proposals.

The law establishes the ground for declaring a debtor insolvent /bankrupt/, regulates the order and conditions for taking measures to prevent bankruptcy. It also establishes the order and conditions of conducting bankruptcy procedures as well as other relationships, which emerge when the debtor is not able to satisfy the creditor's claims in corpore.

The current Federal law is valid for all legal entities with the exception of state enterprises, political parties and religious organizations.

The law, passed by the State Duma on the 1st of July 2001 and later approved by the Federation Council, was rejected by the country's President, who stressed the necessity for the document's detailed elaboration, without which it could not be approved.