When a corporation has spent all its equity through the accumulation of losses, thus showing a negative equity in its balance sheet, Section 225 (1) of the Business Enterprise Code (UGB) prescribes that its management must explain in the notes to the annual accounts whether the debt level is high enough to be of relevance under insolvency law. This would be the case if a negative continuity forecast were added to the debts on the books.
On 25 April 2016, the Supreme Court of the Republic of Indonesia issued Circular Letter No. 2 of 2016 on Enhancing Efficiency and Transparency of Handling of Bankruptcy and Suspension of Payment Case at the Commercial Court (“Circular Letter 2/2016”). In essence, the salient features of Circular Letter 2/2016 are as follows:
Contact: Budidjaja & Associates Lawyers
The Bank Indonesia (“BI”), recently issued a new regulation regarding Hedging Transaction Based on Sharia Principles, namely Bank Indonesia Regulation No. 18/2/PBI/2016 (“BI Regulation No.18/2016”). This regulation was effectively applied on 26 February 2016. The background of the issuance of this new regulation is to protect the business actor who performed the foreign exchange transaction by using sharia principles from the uncertainty of the recent exchange rates.
Contact: Tony Stumm, Partner; Carter Newell (Queensland, Australia)
It sometimes happens that stakeholders become disgruntled with the liquidator appointed to wind up the affairs of a company. So, what can be done?
There is power in s 473(1) of the Corporations Act 2001 (Cth) for the court to remove (and replace) a liquidator. But, how hard is this process?
Contact: Headrick Rizik Alvarez & Fernandez (Dominican Republic)
On August 7, 2015, a new law on Restructuring and Liquidation of Companies and Business Persons (“Law No. 141-15”) was signed into law in the Dominican Republic. The law establishes mechanisms and proceedings to protect creditors in cases of financial difficulty of their debtors by allowing the latter to remain in operation and overcome the economic difficulties that thwart them from complying with previously undertaken obligations, thus achieving business continuity of companies and business persons. Likewise, the Law establishes a legal framework applicable to restructuring and cross-border insolvency proceedings. The Law will enter into effect on February 7, 2017, a date that is 18 months following its enactment.