Article 52. Decision on Declaring Debtor Bankrupt and Initiating Liquidation Proceedings

A court decision on declaring a debtor which is a legal entity bankrupt and initiating liquidation proceedings shall be adopted in cases where the signs of insolvency are established, provided for in part one of Article 5 of this Law, in the absence of grounds for introducing one of the restoration procedures for insolvency, approving a settlement agreement or terminating the insolvency proceedings.

The court decision on declaring a debtor which is a legal entity bankrupt and initiating liquidation proceedings must contain instructions on declaring the debtor bankrupt and initiating liquidation proceedings, appointing a liquidation manager and paying remuneration to them.

A court decision on declaring a debtor which is a legal entity bankrupt and initiating liquidation proceedings may be appealed (protested) by persons participating in the insolvency case, including any of the creditors, as well as by persons not involved in the case, with respect to whose rights and obligations the court adopted a decision.

The court decision on declaring the debtor-individual entrepreneur bankrupt and initiating liquidation proceedings shall indicate that the state registration of the debtor as an individual entrepreneur has become invalid.