Based on the functions and powers of the interim manager at different stages of the bankruptcy procedure, his role can be associated with two time periods. The first period - from the initiation of bankruptcy proceedings until the court recognized the bankruptcy of the debtor, the second period - from the recognition by the court of bankruptcy of the debtor to the appointment of the bankruptcy manager.
Appointment of an temporary Manager
The debtor or creditor initiating bankruptcy must enter into an agreement with the temporary Manager before filing a bankruptcy petition. Applicants select an temporary Manager from the registry of administrators, guided by the experience of the relevant specialist. If the application is submitted by the creditor for budget payments, the state organization or the quasi-state enterprise, then temporary Manager is appointed by the Department of State Revenues of the corresponding territorial unit, within two working days from the date of bankruptcy proceedings in court.
Notification and acceptance of creditors' claims
The temporary Manager shall, within two business days from the date of initiation of bankruptcy proceedings or from the date of appointment, place an announcement on the website of the Department of State Revenues about initiating bankruptcy proceedings and accepting creditors' claims. From this moment the acceptance of claims from creditors begin, which must be declared within a month. Claims that are declared later are included in the register of creditors' claims in the sixth, last and not the right to vote in meetings of creditors.
Placed announcement is a proper notification to all creditors of the debtor and the Law does not provide for additional notifications. However, there are exceptions when the temporary Manager is required to notify a certain category of creditors of the initiation of bankruptcy proceedings and the procedure for filing claims:
(1) citizens, for obligations for causing damage to life and health, within two working days from the date of initiation of proceedings in court or the appointment of an interim trustee;
(2) creditors whose cash claims were previously sent for execution, within two business days from the date of receipt of enforcement documents from these bailiffs.
Temporary Manager's Report
One of the main functions of the temporary Manager is the collection of information regarding financial stability and the submission to the court of an appropriate analytical opinion. For this, the debtor is obliged to provide him with access to accounting documents within three working days from the date of appointment of the temporary Manager, and also at the request of the temporary Manager, any state body, legal entity or individual is obliged to provide him with information about the debtor and his property.
After analyzing all available information, the temporary Manager submits to the court a conclusion on the financial stability of the debtor. Meanwhile, if the debtor did not provide access to the temporary Manager to the accounting records or in the absence of other creditors other than the applicant, the temporary Manager does not draw up report, but prepares an appropriate act.
The court's decision
The court, taking into account the conclusion or act of the temporary Manager, must decide on the recognition or refusal to declare the debtor bankrupt within two months from the date the case was opened.
The court decides to declare the debtor bankrupt given: (1) the temporary Managers report that there is a basis for bankruptcy, or (2) the act of not providing access to accounting documents. The court refuses to recognize the debtor as bankrupt, taking into account: (1) the conclusion of the temporary Manager on the groundlessness of the bankruptcy petition, (2) the conclusion of the temporary Manager on the absence of grounds for the bankruptcy procedure, but on the grounds for the rehabilitation procedure, or (3) the act on the absence of other creditors except the applicant.
On the role of the temporary Manager with the recognition by the court of the bankruptcy of the debtor until the appointment of the bankruptcy Manager, read our next article