BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SLOVAKIA]
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they can reasonably be expected to be duly settled within 30 days of their due date, e) cash receivables, securities and financial instruments that are repayable on demand (sight), if it is reasonable in the exercise of professional diligence to expect that they would be duly and punctually discharged if they were called for repayment on the following day. A debtor may initiate a preventive restructuring proceeding provided that there is a chance of preserving and recovery of its business, it is not yet bankrupt and no execution or other enforcement proceedings have been commenced against the debtor to enforce a pecuniary claim. There are two different types of preventive restructuring – public and non- public. The basic difference is that in a public preventive restructuring, in principle all monetary liabilities can be dealt with (except those of “unaffected creditors”, e.g. small creditor with claim in the amount up to EUR 5,000, persons with an employment claim against the debtor, non- monetary creditor, bankruptcy trustee etc.), and in a non-public preventive restructuring only the claims of licensed creditors can be dealt with (for example subject to the supervision of the National Bank of Slovakia or another similar institution abroad i.e., banks and leasing companies.)
debtor must be a legal person registered in the public sector register (“RPVS”) already at the time of the submission of the proposal. The application shall include the restructuring plan attached with measures of a legal and commercial nature, which are designed to avert the debtor's insolvency and to ensure the viability of the debtor's business. The court shall, without undue delay after the authorisation of a public preventive restructuring appoint a creditors' committee for the debtor. The creditors' committee shall have three or five members and shall in particular have the power to comment on the restructuring plan, to determine the acts of the debtor, except acts which do not materially alter the composition of his assets, liabilities or obligations, which are subject to the approval of the creditors' committee or a designated consultant, and to approve those acts. Consultant The formality of the process as well as the legal or economic steps to be taken will normally go beyond the activity and the experience of the business or the company itself requires the professional assistance of a consultant. The list of consultants is published on the website of the Ministry of Economy of the Slovak Republic. The company is obliged to use the services of a consultant (with a few legal exceptions) and may choose more than one adviser of its own choice. The consultant participates in the preventive restructuring, in particular by continuously assessing the current situation of the company, explaining and answering questions from creditors and other parties regarding the situation of the company and the development trend. The consultant is required to act with professional care, carry liability insurance, and is liable for damages for breach of duty under the Act. Agreements that would exclude such liability are prohibited, and those that would
• Process of Public preventive restructuring
In order to initiate a public preventive restructuring, the debtor must submit an application to the competent court (according to the debtor's registered seat). If the court has approved a public preventive restructuring, the debtor is entitled to reapply no earlier than two years after the end of the preventive restructuring. The most important condition for the authorisation of the procedure is that the
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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