Myanmar—new insolvency regulations 2020
Produced in partnership with Nishant Choudhary and Arijeet Nandi of DFDL
Myanmar—new insolvency regulations 2020

The following Restructuring & Insolvency practice note produced in partnership with Nishant Choudhary and Arijeet Nandi of DFDL provides comprehensive and up to date legal information covering:

  • Myanmar—new insolvency regulations 2020
  • Corporate Rescue and Rehabilitation Proceedings
  • Initiation of Rehabilitation Proceedings
  • Rescue Stage
  • Plan Stage
  • Protections available to a company undergoing insolvency proceedings
  • Receiver
  • A snapshot of the corporate rescue and rehabilitation proceedings:
  • Winding-up Proceedings
  • Initiation of the Winding-up Process
  • More...

Myanmar—new insolvency regulations 2020

On 25 March 2020, the Insolvency Law 2020 (the Law) which had been enacted by the Pyidaungsu Hluttaw entered into force. Subsequently, on 28 April 2020, the Insolvency Rules 2020 (the Rules) also came into force (the Law and Rules collectively are the Insolvency Regulations). The Insolvency Regulations repeal the antiquated Yangon Insolvency Act 1910 and Myanmar Insolvency Act 1920 and introduces a new regime applicable to corporations with a special focus on micro, small and medium scale enterprises (MSMEs). The Rules prescribe the timeframe for each phase of insolvency proceedings along with the applicable fees, forms and penalties for violations of the Law.

A company that is unable to pay its debts as and when they become due will be declared insolvent. Insolvency proceedings in the form of rehabilitation or liquidation may be initiated when a company is declared insolvent. Corporate rehabilitation proceedings to rescue the company may be initiated by a company, its secured creditor(s) or by a rehabilitation order passed by the court. In the event that company rescue is not possible, the company may be liquidated either by a voluntary or court mediated winding-up process. A company may also be directly liquidated without going through the rehabilitation phase. Such a petition for the direct winding-up of a company without having to go through the rescue process may be

Popular documents