(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)?

 

There are no civil or penal sanctions in the legal system of this country in relation to the incurring and non-payment of debts by corporate debtors. For certain fraudulent acts however, penal sanctions is expressly imposed on the officers and directors of the corporation (Sec. 52, Insolvency Law).

(b) What are these sanctions?

 

N/A

(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?

 

N/A

(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?

 

N/A