Corporate Recovery & Insolvency

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Recent Articles

  •  
    17/06/2024
    Peru

    Insolvency clawback actions from a Peruvian perspective

    The proposed EU Directive on harmonisation of insolvency law seeks to set minimum standards for exercising avoidance actions in insolvency proceedings in order to safeguard the insolvency estate from unlawful asset transfers before the initiation of insolvency proceedings.In Peru, the insolvency system is administrative rather than judicial. Because the administrative authority has limited powers, preference and avoidance actions must be resolved by the Judiciary. In recent years, the use of these actions has become more frequent.Scope of avoidance actionsUnder the Peruvian Insolvency Law (Law...
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    31/05/2024
    Colombia

    Colombian law provides for avoidance actions to revoke illegitimate acts before and during insolvency proceedings

    'Avoidance action' is an umbrella term for any proceedings that seek to revoke illegitimate acts that diminish the debtor’s assets. These actions aim to protect creditors and maximise the value recovery from the debtor. Colombian law stipulates a variety of avoidance actions before and during insolvency proceedings, notwithstanding criminal liability for the revoked acts.Before insolvency proceedingsArticle 2491 of the Colombian Civil Code provides an avoidance action known as the 'Acción Pauliana', which allows for the rescission of acts executed before the start of insolvency proceedings...
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  •  
    26/04/2024
    Turkiye

    Proposed EU Directive on Harmonisation of Insolvency Law could safeguard Turkish creditors, if adopted

    Insolvency proceedings and avoidance actions play a significant role in safeguarding creditors' interests and maximising the insolvency estate in Türkiye. The European Commission's Proposal for a Directive (COM (2022)702) aims to harmonise contestation rights in insolvency across EU member states. Although Türkiye is not an EU member states, Türkiye has similar avoidance actions regulated under its own insolvency legislation, the Turkish Enforcement and Bankruptcy Law (EBL).OverviewSimilar to the EU’s proposed Directive, the EBL contains provisions for the annulment of transaction...
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    26/04/2024
    Croatia

    Contestation rights in Croatia and the impact of the EU’s insolvency law draft Directive

    Regarding the draft Directive proposed by the European Commission that harmonises facets of insolvency law, it is worth noting that the draft Directive does not prevent EU member states from maintaining or adopting provisions that offer greater protection to creditors than those outlined in the Directive. Since the existing Croatian law framework on contestation rights provides numerous and detailed rules that go beyond the draft Directive, its implementation is not expected to require extensive or substantial modifications.Legal acts intentionally detrimental to creditor (Art. 8)The acts of the...
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  •  
    16/04/2024
    Poland

    Poland’s strict avoidance action regulations differ from EU Draft Directive

    The European Commission has published a new proposal for a Directive that would harmonise certain aspects of insolvency law across the EU. This proposal, following the enactment of Directive (EU) 2019/1023, illustrates a strong desire to facilitate the free movement of capital within Europe. A significant part of the proposed Directive is designed to make laws governing avoidance actions uniform across the EU.A review of the draft proposal indicates that Poland already has strict provisions relating to avoidance actions aimed at protecting creditors against fraudulent actions preceding the insolvency...
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  •  
    22/03/2024
    Bosnia and Herzegovina

    Avoidance rights in Bosnia and Herzegovina

    On 7 December 2022, the EU Commission published a draft directive harmonising certain aspects of insolvency law, which is now undergoing EU legislative procedure. In light of this the proposal, this article provides an overview of the current state of avoidance rights regulation under the insolvency legal framework in Bosnia and Herzegovina.Insolvency avoidance rights regulation in Bosnia and HerzegovinaBosnia and Herzegovina (BiH) consist of two distinct administrative entities: the Federation of BiH (FBiH) and Republika Srpska (RS), and the special administrative unit Brčko District of BiH...
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