Article 161. Procedure for Concluding Settlement Agreement

At any stage of consideration by the court of an insolvency case, the debtor and creditors shall have the right to conclude a settlement agreement.

The decision to conclude a settlement agreement on behalf of the creditors shall be adopted by the meeting of creditors. The decision of the meeting of creditors to conclude a settlement agreement shall be adopted by a majority vote of the creditors of the first, second and third groups and shall be considered adopted provided that all creditors on obligations secured by the pledge of the debtor's property voted for it. The powers of the representative of the creditor to vote on the issue of concluding a settlement agreement must be specifically provided for in the power of attorney.

The settlement agreement shall be concluded on behalf of the debtor, respectively, by the debtor who is an individual entrepreneur or the head of the debtor, an external manager, liquidation manager or financial manager.

Participation in the settlement agreement of third parties shall be allowed, which assume the rights and obligations provided for by the settlement agreement.

The settlement agreement shall be subject to approval by the court, as a result of which a ruling shall be issued, which shall indicate the termination of the proceedings on the insolvency case. If a settlement agreement is concluded in the course of liquidation proceedings, the court shall issue a ruling approving the settlement agreement, which shall indicate that the decision to declare the debtor bankrupt and initiate liquidation proceedings is not subject to execution.

The settlement agreement shall enter into force for the debtor, creditors, as well as third parties participating in the settlement agreement, from the date of its approval by the court and shall be binding on them. A unilateral refusal to execute a settlement agreement that has entered into force shall not be allowed.

The creditor who voted for the conclusion of the settlement agreement, the founders (participants) or the owner of the debtor's property shall have the right to fulfill the debtor's monetary obligations and (or) tax and duty obligations to the creditors who voted against the conclusion of the settlement agreement or did not take part in the voting. In this case, the creditor shall be obliged to accept the fulfillment offered for the debtor, and the person who fulfilled the obligations of the debtor shall be transferred the rights of the creditor's claim under the obligation.