Bankruptcy Law

1. The trustee may, upon examination of the debtor’s list of contracts as well as relevant information and documents submitted to him, issue a decision within 60 days from the date of initiation of the financial restructuring procedure for the termination of any contract concluded by the debtor, if such termination is necessary to implement the confirmed proposal and to protect the interests of the majority of creditors, and does not cause substantial damage to the debtor's counterparty, even if the contract provides otherwise. Such termination shall be pursuant to a written notification to the counterparty. The contract shall be deemed terminated upon the lapse of 30 days from the date of notification, unless the trustee and the counterparty agree on a shorter period. The trustee may request the court to extend the period during which he is entitled to decide on the termination of any contract for a period not exceeding 30 days, provided this is necessary in view of the volume and nature of the debtor’s business. 2. Notwithstanding paragraph (1) of this Article, the trustee may, upon examining the debtor’s list of contracts and relevant information and documents, issue a decision terminating any lease contract for properties where the debtor conducts his business within 60 days from the procedure initiation date if such termination is necessary to implement the confirmed proposal and protect the interests of the majority of creditors, even if the contract provides otherwise. The trustee must notify the debtor’s counterparty of his decision in writing. The contract shall be deemed terminated upon the lapse of 90 days from the date of notification, unless the contract provides for a shorter period. The trustee may request the court to extend the period during which he is entitled to decide on the termination of any contract for a period not exceeding 30 days, provided this is necessary in view of the number of properties where the debtor conducts his business. 3. The trustee’s termination of any contract between the debtor and the counterparty under paragraphs (1) or (2) of this Article, shall not prejudice the rights of such counterparty including the right to make a claim to the trustee for any damage incurred as a result of such termination, for purposes of voting on the proposal. 4. If the debtor's counterparty objects to the trustee's decision to terminate his contract, the court shall consider such objection in accordance with the provisions of Article 62 of this Law. 5. If the trustee decides not to terminate any contract in accordance with paragraphs (1) and (2) of this Article, the debtor shall be obligated to fulfill the terms of the contract, unless amended or affected by the plan. 6. The trustee may sublease to a third party the property rented by the debtor or part thereof, even if the contract provides otherwise. The debtor must guarantee preservation of the property and payment of the lease in accordance with the terms of the contract. 7. Contracts relating to government tenders and procurement concluded between a government agency and the debtor shall not be subject to the provisions of this Article, as well as Articles 22, 23, 24, and 60 of this Law. 8. Financing contracts concluded between banking or financing companies and the debtor shall not be subject to the provisions of this Article, as well as Articles 23, 24, and 60 of this Law.