SCOPE OF APPLICATION AND LEGAL LIMITATIONS OF AN AMICABLE AGREEMENT IN INSOLVENCY PROCEEDINGS

Abstract

This article examines the scope of application and legal limitations of an amicable agreement in insolvency proceedings as an important rehabilitative mechanism of bankruptcy law. The study analyzes Article 162 of the Law of the Republic of Uzbekistan No. ORQ-763 of April 12, 2022 “On Insolvency,” with particular attention to the differentiated authority to conclude an amicable agreement depending on the stage of insolvency proceedings, the limitation of its application to pre-existing creditors’ claims, and the transparency requirement in agreements involving interested parties. It is argued that these rules define not only the formal structure of the amicable agreement, but also its legal boundaries, the distribution of powers among the relevant subjects, and its functional purpose as a tool for restructuring existing debt obligations rather than regulating new obligations. The article further provides a comparative analysis of the legislation of France, Japan, China, and the United States, demonstrating that while these legal systems also restrict restructuring mechanisms to pre-commencement claims and subject them to judicial supervision, they grant courts a more active role in balancing creditors’ interests and confirming restructuring plans. On this basis, the article concludes that the Uzbek model ensures legal certainty and procedural fairness, but requires further development in light of modern international trends, particularly through creditor classification, stronger judicial review, application of the “no worse off” principle, and a more balanced approach to the veto rights of secured creditors.