BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SLOVAKIA]
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occurred before temporary protection was granted, the creditor may not (over the duration of the temporary protection) terminate the contract, withdraw from the contract, refuse performance under the contract nor change the content of the rights or obligations under the contract (the exception is a performance by the other party which is not to be used in connection with the ordinary course of the debtor's business) h) impossibility to terminate the debtor's financing - The financing agreed between the creditor and the debtor prior to the providing of a temporary protection cannot be terminated during the temporary protection due to the debtor's failure to comply with the terms of the financial ratios. The debtor cannot draw on the financing agreed before the temporary protection was granted without the approval of the creditors' committee. i) suspending of time limits - The time limits for exercising rights against the debtor, including the time limits for exercising claims arising from contestable legal acts, shall not run during the period of temporary protection. With consent of the creditors' committee, the debtor may accept crisis financing for the purpose of ensuring the proper operation of its business during the temporary protection period. Such financing shall be deemed to be funds provided up to a maximum of to the extent of six months of the debtor's average monthly operating costs for the preceding calendar year and it may only be used for the purpose of ensuring the proper functioning of the debtor's business during temporary protection. Obligation to provide information
The debtor's statutory body is obliged to inform the court, the trustee, the creditors' committee and the creditors who gave their consent with granting of temporary protection, and the protection has been granted, without delay in writing of the debtor's bankruptcy occurring during the public preventive restructuring. A debtor may continue a preventive public restructuring even after bankruptcy has occurred. If the statutory body fails to comply with this obligation, the legal fiction of contractual penalty in the amount of EUR 12,500 and liability for damages against the creditors under the provisions of the Bankruptcy Act arises. Non- payment of this penalty leads to being listed in the Register for Disqualifications, which means that the breaching person cannot be appointed as a statutory body (or its member), member of a supervisory body, branch director or a proxy for a period of three years. Restructuring plan The restructuring plan consists of an introductory part with the identification of the debtor, the trustee and the court, a descriptive part and a binding part. The descriptive part shall include, in addition to the characteristics of the debtor and its financial situation, the expected rate of satisfaction of each of the creditors concerned in the best alternative scenario and the proposed rate of satisfaction of each of the creditors concerned, and a justification of the reasonable prospects of the public plan to avert imminent insolvency and ensure the viability of the debtor's business and an identification of the necessary preconditions for the achievement of that objective. The binding part shall include a description of how the debtor's property, business or part of the debtor's business is to be disposed of, whether transferred or encumbered or
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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