Executory contracts in insolvency: The Bangladeshi perspective

Abstract

This chapter considers the treatment of executory contracts upon the default of a debtor company under the law of Bangladesh and the main factors behind the most recent reforms in the area. With this chapter, the authors tentatively appraise Bangladesh’s corporate insolvency regime and its treatment of executory contracts during insolvency proceedings, and thereby open a broader discussion on this central topic. Section B considers the various insolvency procedures available to a domestic company in financial distress, and the implications that entering into any such procedures have on executory contracts. This is followed by considering certain types of contract and contractual provisions that are treated differently during insolvency proceedings. Section D, which contains a brief overview of recent and ongoing legislative reforms, provides further material for the concluding recommendations of this chapter.