Insolvency


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Insolvency

 

the inability of an economic entity such as an enterprise, organization, or other juridical person to ensure paymeny of its fiscal obligations.

In the USSR, enterprises and economic organizations that fail to meet installments on bank loans or omit payments to the state budget and to their suppliers over a prolonged period are classified as insolvent. Insolvency is caused primarily by such shortcomings in economic operations as failure to fulfill production and financial plans or accumulation of excess production stocks. Inadequacies in material-technical supply to the enterprise can also be a cause of insolvency. Delays in receipt of earnings for products sold, unplanned receipt of production stocks, and transportation difficulties can also contribute to insolvency; these are temporary factors independent of the operation of the economic organization.

For capitalist companies, insolvency leads to bankruptcy and to the liquidation of the enterprise; the burden of the unemployment thus caused is ultimately borne by the working people. The socialist state intervenes vigorously in the operation of enterprises that are functioning poorly; while employing economic sanctions and bank audits, it also extends fiscal assistance in order to improve the work of the insolvent enterprise.

O. I. LAVRUSHIN

References in periodicals archive ?
For the unversed, the Insolvency and Bankruptcy Code, 2016 (Code) provides for reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals in a time bound manner for maximisation of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders, and for this purpose, has created an institutional infrastructure comprising of adjudicating authorities, the IBBI, insolvency professionals, insolvency professional agencies and information utilities.
Duncan Swift, deputy vicepresident of insolvency and restructuring trade body R3, said: "The slight rise in corporate insolvencies across 2017 as a whole is a reflection of the difficult year that firms in England and Wales have been through.
The Supreme Court held that several provisions of the old Insolvency Act (Act No.
Richard Wolff, North West chair of R3 and head of corporate recovery and insolvency at law firm JMW, said: "Overall personal insolvencies in the North West reached their peak in 2010 and the number has declined in every single area in the region since then.
Despite the low personal insolvency rate, the number of people going insolvent edged up by 2.
This report demonstrates the positive work carried out by insolvency practitioners, with even greater numbers of businesses in difficulty bene-fitting from behind the scenes assistance from our members.
He said: "Formal insolvency proceedings empower some insolvency experts to go after fraudsters and return money to victims.
The Insolvency Service was cited as saying: "In total, individual insolvencies have generally been on a decreasing trend since 2010.
The bigger picture is that it (new insolvency legislation) will bring in more certainty, which in turn will attract more foreign investments," a senior QFCA official told Gulf Times.
A specialist in the provision of business recovery and insolvency services, Begbies, like many others, geared up for what should have been the insolvency profession's spring rains as corporate stragglers succumb on the road to recovery.
The latest DETI Insolvency Service figures show that in the second quarter of this year there were 105 company liquidations in Ulster.
SeeNews) - Jul 2, 2013 - Schnell-Estrich und -Putz GesmbH from Upper Austria is the first company to file for insolvency after the bankruptcy of builder Alpine Bau, Wirtschaftsblatt said yesterday.