The article “The New Myanmar Insolvency Law 2020: An Overview”, co-authored by Nishant Choudhary, DFDL Partner and Myanmar Deputy Managing Director, and Arijeet Nandi, DFDL Myanmar Junior Legal Advisor, was recently published on Lexis PSL – Restructuring and Insolvency.
The article revolves around the new Insolvency Law and Insolvency Rules both of which duly entered into force in 2020 to regulate corporate insolvency with a special focus on micro, small and medium businesses. This article outlines and sheds greater light upon the rescue and rehabilitation proceedings applicable to companies under the new Law and its implementing Rules. The liquidation process for insolvent companies, the priority of debts and asset distribution procedures in liquidation scenarios are laid out in detail. Transactions which would be deemed as suspicious along with the ‘suspicion period’ for determining insolvency are also covered. The article highlights the importance and timeliness of the new Law and its implementing Rules in terms of streamlining and bringing welcome clarification to insolvency issues and setting in place a smooth and seamless insolvency regime in Myanmar.
This article first appeared on LexisPSL R&I and is reproduced with permission.
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.
Partner, Deputy Managing Director & Head of Banking and Finance Practice, Myanmar
Junior Legal Adviser, Myanmar