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How shall the assets of an enterprise be divided?

Assets of an enterprise are divided under the law when the Judge issues a decision on the bankruptcy procedure initiation. Should the value of assets be insufficient to pay as regulated, the entities in the same priority order shall receive payments in proportion to the debts owed to them. The assets of the enterprise shall be divided in the following order:

    • Bankruptcy expenses;
    • Salaries, severance allowances, social insurance, health insurance owed to employees; and other interests under labor contracts and collective labor agreements.
    • Debts arising after the bankruptcy procedure initiation in order to restore the business operations of the enterprise;
    • Financial obligations toward the State; unsecured debts payable to creditors on the list of creditors; secured debts not yet paid because the value of the secured property is insufficient to pay the debt.

If there is a residual value of the assets of the enterprise after full payment of the above items, such value shall belong to:

    • The owner of the private enterprise;
    • The owner of a single-member limited liability company;
    • The members of a multiple member limited liability company or the shareholders of the shareholding company;
    • The partners of the partnership.

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