Uzbekistan Doing Business 2020

Uzbekistan
Doing Business 2020
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Figure – Resolving Insolvency in Uzbekistan and comparator economies – Measure of Quality
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Uzbekistan
Kazakhstan
Kyrgyz Republic
Moldova
Russian Federation
OECD high income
Europe & Central Asia
0
2
4
6
8
10
12
14
16
Sub-Indicator Score
3
2.5
2
0.5
6
3
4
1.5
3
3
1
2
4
2.5
3
2.5
5
2.5
3
1
5.3
2.8
2.1
1.9
4.5
2.5
2.3
1.7
Management of debtor's assets index (0-6)
Commencement of proceedings index (0-3)
Creditor participation index (0-4)
Reorganization proceedings index (0-3)
Uzbekistan_and_comparator_economies_–_Recovery_Rate'>Figure – Resolving Insolvency in Uzbekistan and comparator economies – Recovery Rate
Uzbekistan
Kazakhstan
Kyrgyz Republic
Moldova
Russian Federation
Europe & Central Asia
0
5
10
15
20
25
30
35
40
45
Recovery rate(cents on the dollar)
34.4
39.8
40.6
32.1
43.0
38.5
Uzbekistan
Doing Business 2020
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Details – Resolving Insolvency in Uzbekistan
Indicator
Answer
Score
Proceeding
liquidation
Liquidation is the most likely procedure because there are several creditors involved and the debts of the hotel
significantly exceed the permissible limits under Uzbekistan law. Reorganization is not often achieved in Uzbekistan for
private companies.
Outcome
piecemeal sale
Hotel's assets are likely to be sold piecemeal because currently it would be very difficult to find a buyer willing to
purchase the entire hotel and continue operating it.
Time (in years)
2.0
The petition to initiate liquidation of the debtor will be lodged with the court within 1 month from the moment when
monetary obligations became due. The court will take up the case within 5 days and will complete its consideration
within 2 months. Then the Court will commence supervisory proceedings (from 6 to 12 months). The court will also
appoint an administrator, who will take over the company's financials, publish notice of bankruptcy, receive claims from
creditors and try to reach settlements between them, whenever possible, and prepare a register of creditors' claims.
The administrator also must prepare an interim balance sheet of the debtor and present it to the creditors, who will
have to approve it. The hotel will then go into liquidation. A public auction will be held to sell the assets, after which the
creditors will be paid and the company will be liquidated. Liquidation generally lasts between 6 and 12 months.
Cost (% of estate)
10.0
The total cost of the proceedings will amount to around 10% of the value of the estate. Main expenses will include
attorneys' fees (up to 3%), remuneration and fees of the administrator (up to 4%), fees of other professionals involved
in the insolvency proceedings, such as accountants and assessors (2%), and auctioneer’s fees (up to 2%).
Recovery rate
(cents on the dollar)
34.4