(a) Are there civil or penal/criminal sanctions in the legal system of this economy in relation to the incurring and non-payment of debts by corporate debtors (for example, some type of sanction - such as the concept of 'insolvent trading' - to which the directors of the corporate debtor may be subject)?

Yes, there are civil and criminal sanctions in relation to incurring and non-payment of debts.

(b) What are these sanctions?

To briefly state the types of sanctions, in the case of checks, criminal sanctions may apply for criminal use of checks (e.g., non-payment due to insufficient funds, cease of trading, termination of checks etc. after the check is issued). Criminal fraud and misrepresentation and civil tort liability may also apply.

(c) Do any of these sanctions have the effect of encouraging the directors of a corporate debtor to seek protection for the corporate borrower under the insolvency law regime?

This does not seem to be the case.

(d) Does the presence of the possible application of any of these sanctions create a problem if a corporate debtor which is in financial difficulty or insolvent seeks to negotiate an informal work out with creditors?

This does not seem to be the case.