Corporate Recovery & Insolvency

Welcome to the home of corporate recovery & insolvency on Law-Now.

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Recent Articles

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    08/03/2024
    Bulgaria

    Bulgarian avoidance actions in line with EU Proposal

    The EU Commission issued a proposal for a Directive harmonising certain aspects of insolvency law, EU (COM(2022) 702 final. Although still being discussed, the Proposal is unlikely to result in material amendments to existing Bulgarian insolvency avoidance actions, which follows the principles set out in the Proposal and in many ways affords creditors a greater level of protection. Nevertheless, certain time periods and rules on the implementation of the avoidance actions may need to be amended in the Bulgarian law.The following article gives an overview of Bulgarian avoidance actions and highlights...
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    08/03/2024
    Slovakia

    EU Harmonisation of avoidance actions from Slovak perspective

    On 7 December 2022, the EU Commission issued a proposal for a Directive harmonising certain aspects of insolvency law. In this article, we focus on insolvency avoidance rights from a Slovak law perspective and the impact of the Proposed Directive.Avoidance rights are an important tool of creditors in enforcing their claims against a default debtor and represent a punitive threat to debtors to avoid speculative transactions. Slovak law recognises (avoidance rights under general civil law, which can be applied irrespective of insolvency if the conditions are met, and insolvency avoidance rights triggered...
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    08/03/2024
    Slovenia

    Slovenia’s perspective on the proposed harmonisation of avoidance actions in insolvency proceedings

    The proposed EU Directive on the harmonisation of insolvency law aims to establish minimum conditions for exercising avoidance actions in insolvency proceedings in order to protect the bankruptcy estate against unlawful deprivation of assets prior to the opening of insolvency proceedings. In Slovenia, existing contestation rights provide a strict legal framework to prevent such transfers of assets and the proposed Directive is expected to strengthen them.Scope of avoidance rulesThe proposed Directive was designed to prevent legal acts that harm the creditor (or group of creditors) by giving preference,...
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  •  
    04/03/2024
    Slovenia

    Slovenian amendment to Insolvency Act creates new judicial restructuring procedure to eliminate likely insolvencies

    On 1 November 2023, the long-awaited amendment to the Slovenian Insolvency Act (Zakon o finančnem poslovanju, postopkih zaradi insolventnosti in prisilnem prenehanju or ZFPPIPP-H) has entered into force.In the wake of decisions of Slovenia’s Constitutional Court, the implementation of the Directive on restructuring and insolvency (Directive (EU) 2019/1023) and numerous criticisms of existing insolvency legislation by legal experts, this amendment introduced important changes to Slovenian insolvency law. This article examines the newly introduced Judicial Restructuring Procedure (postopek...
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  •  
    01/03/2024
    Romania

    Harmonisation of insolvency avoidance rights from the Romanian perspective

    The EU directive harmonising certain aspects of insolvency law, a Proposed Directive published by the European Commission on 7 December 2022, sets minimum harmonisation standards in all member states regarding avoidance actions.According to current Romanian Insolvency Law, the concept of avoidance actions already exists and can be defined as the right of the insolvency administrator/liquidator to bring actions before the syndic judge for the annulment of fraudulent acts or operations of the debtor to the detriment of creditors' rights during the two years prior to the opening of proceedings. If...
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  •  
    01/03/2024
    Czech Republic

    Harmonisation of insolvency avoidance rights from the Czech perspective

    The right to effectively avoid the illegitimate removal of assets from a company in financial difficulties is a key element of any insolvency law that protects the rights of creditors and maximises the recovery of value from the insolvent company.Czech insolvency law, and in particular the insolvency avoidance rights, play a significant role as a recovery tool for creditors in insolvency proceedings, but in practice mainly act as a preventive warning signal for a debtor and its creditors when trading, even before financial problems arise.The EU directive harmonising certain aspects of insolvency...
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