On 22 April 2019 Law on Insolvency and Bankruptcy was amended by the Parliament of Azerbaijan.
The grounds for insolvency of the debtor, the company or individual person willing to start the bankruptcy proceedings, were amended and further clarified. Under the amendments, the conditions qualified as insolvency are as follows:
Moreover, additional provision were adopted that further regulates court hearings. Under the new provision, the court must hold hearing and render its decision within 1 month from the date of receipt of the insolvency claim. This one month period would similarly be applied to further courts of appeal and cassation, as well. Where the appeal is filed from the decision of the court, the sale of the debtor’s assets and payments to the creditors are to be suspended.
Another important amendment is related to the sanation (recovery) plan of the insolvent debtor. While voting on the sanation (recovery) plan, only the creditors whose rights would be affected upon the adoption of the plan are entitled to attend the relevant meeting of creditors. Notwithstanding this, the claims of the creditors who voted against the plan shall be ensured in the order of claims under the bankruptcy proceedings.