Myanmar enforced the Insolvency Law (“Law”) on 25 March 2020 along with its implementing rules on 28 April 2020. The Insolvency Law repeals the Yangon Insolvency Act 1909 and the Myanmar Insolvency Act 1920. This paradigm shift from the age-old insolvency regime provides comprehensive, unified legislation dealing with personal, corporate, and cross-border insolvency.
Unlike the previous regime, the Law presents companies with a new alternative to liquidation which is rescue and rehabilitation. The Law aims to provide efficient corporate rescue and rehabilitation for distressed businesses. Upon the rehabilitation scheme not being successful, an effective liquidation/winding-up process for non-viable businesses is also provided under the Law.
DFDL Myanmar has prepared a list of 15 key questions and answers (“Q&A”) which succinctly specifies the most significant provisions under the Law. The Q&A also identifies the shift in the regime and mentions relevant details. The document has been tailor-made specifically to answer initial questions from clients/relevant stakeholders taking into consideration businesses and the market. This would give a great insight into the insolvency regime, which would come handy to companies and professionals alike.
The information provided here is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.