Not in the modern sense found in the UK, Singapore or India. The Companies Act 1994 provides for schemes of compromise or arrangement sanctioned by the High Court Division, and the court can stay certain proceedings in connection with a scheme or a winding up, but there is no general administration or rescue process with an automatic moratorium. Reform has been discussed for many years. In practice, most restructurings are achieved through negotiation with banks under Bangladesh Bank policies, supported where needed by court applications. We design insolvency strategies around the tools actually available today.

Yes. A creditor can petition the High Court Division to wind up a company that is unable to pay its debts, and inability may be shown by an unpaid statutory demand, an unsatisfied decree or other evidence. Winding up is a serious remedy, and the court will consider whether the debt is genuinely disputed. Sometimes a petition is used as leverage, which can be challenged if it is an abuse. For creditors, recovery suits, enforcement of security or arbitration may be more effective. We advise both creditors and companies on insolvency petitions, defences and settlement.

Banks can reschedule or restructure classified and unclassified loans within limits set by Bangladesh Bank circulars, typically requiring a down payment, revised repayment terms and approval at an appropriate level within the bank. The rules on down payments, number of reschedulings, interest treatment and reporting have changed several times and must be checked for each case. Rescheduling affects the borrower's credit information status and future borrowing. We negotiate with banks on behalf of borrowers, review proposed terms carefully, and make sure the final agreement reflects what was negotiated, including releases where relevant. Precise drafting protects the borrower.

Directors may face personal liability for fraudulent trading, misfeasance, breach of duty or misapplication of company money if a company enters winding up, and they are often personal guarantors of bank loans. Defaulted borrowers can face restrictions linked to credit information listing, and dishonoured cheques can lead to criminal complaints. Transactions that favour connected parties before insolvency can be reviewed. Good governance, careful records and timely advice reduce these risks significantly. We advise directors on their duties in distress, document board decisions, and represent them in recovery and related proceedings. Minutes of board decisions are worth keeping.

Yes, although the route depends on the contract and the available assets. Foreign creditors may bring arbitration or court proceedings under their contracts, then enforce awards or judgments in Bangladesh; Bangladesh is a party to the New York Convention, and foreign arbitral awards can be enforced under the Arbitration Act 2001. Foreign judgments are enforceable only in limited circumstances. Foreign creditors may also petition for winding up. The specialised loan recovery courts are generally reserved for local banks and financial institutions. We advise foreign creditors on the most effective strategy in an insolvency or recovery situation.

Bangladesh has not adopted the UNCITRAL Model Law on Cross-Border Insolvency, and there is no general statutory procedure for recognising foreign insolvency proceedings or office holders. A foreign liquidator or administrator seeking to deal with Bangladesh assets will usually need local proceedings, such as a winding-up petition, a suit or enforcement of a foreign judgment or award, and cooperation from the Bangladesh company's directors and banks. Outcomes depend heavily on the facts. We advise foreign office holders and creditors on cross-border insolvency strategy, asset tracing and coordination with local stakeholders. Foreign creditors should obtain Bangladesh advice before acting.

Employees' claims for unpaid wages and statutory benefits rank with priority among unsecured claims in a winding up, and the Labour Act 2006 sets requirements for closure, retrenchment, lay-off and termination benefits. In the ready-made garment and other export sectors, closures can also draw attention from labour authorities, buyers and worker representatives. Planning for employee entitlements is therefore essential in any restructuring or closure. We advise employers, investors and insolvency practitioners on workforce obligations, calculating dues, consultations and handling closure in a lawful and orderly way. Keep payroll and attendance records safe.

Yes, but distressed purchases carry particular risks: defective title, existing mortgages and hypothecations, disputes between creditors, challenges to the sale as undervalue, unpaid taxes and utilities, and employee claims. Sales by banks, receivers or liquidators can provide better protection than private deals, but the process and court approvals must be followed carefully. We carry out focused diligence, confirm that security will be released and that the seller has authority, structure the transaction to limit inherited liabilities, and document the purchase so it can withstand later insolvency challenges. Check title and charges before paying.