BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SLOVAKIA]
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If any of the groups does not approve the restructuring plan, the debtor is entitled to seek in a petition for confirmation of a plan by the court, to substitute the consent of the group by a court order. If the court confirms a restructuring plan, the debtor's statutory body shall enforce the plan and shall refrain from any action that may frustrate or impede the orderly or timely implementation of the plan. For greater certainty that the debtor will follow the restructuring plan, the plan may specify that a supervisory administration is put in place for the duration of its implementation. The purpose of the supervisory administration is to supervise and control the debtor's business activities in order to ensure that the plan will be accomplished. Only a person registered in the list of trustees may be appointed as a supervisory trustee. The notification of commencement and of termination of the supervisory administration shall be published in the Commercial Journal. (3) Restructuring and Bankruptcy proceedings According to the Bankruptcy and Restructuring Act No. 7/2005 Coll. there are 2 forms of bankruptcy: • Insolvency - the debtor is more than 90 days late in meeting at least 2 (two) financial liabilities with more than one creditor (in preventive restructuring proceeding when bankruptcy is imminent, the criterion of imminent insolvency is taken into account), • Indebtedness - An indebted person is one who is required to keep accounts, has more than one creditor and the value of his liabilities exceeds the value of his assets. If the entrepreneur (legal person) finds out that it is bankrupt according to the above criteria, it may decide for formal restructuring
proceedings and entrust the restructuring trustee with the preparation of a restructuring opinion to determine whether the restructuring requirements and conditions are fulfilled, if not the entrepreneur must file an application for bankruptcy proceedings . The restructuring administrator may recommend restructuring proceedings of the debtor if it is reasonable to assume that at least a substantial part of the business of the debtor's business is maintained, and in the case of restructuring proceedings, it is reasonable to assume that the debtor's creditors are more satisfied than in the case of bankruptcy. Restructuring proceedings are a legally and strictly defined process, which is aimed at rescuing a debtor, where the debtor agrees with all creditors to settle their claims and maintains the next operation of the debtor's business including employment, even after the restructuring has ended. A debtor who is a legal person is obliged to file an application for bankruptcy proceedings within 30 days of becoming aware or, with due diligence, could have become aware of its bankruptcy (both in the case of insolvency and in the case of indebtedness). This obligation on behalf of the debtor is equally for a statutory body or a member of the statutory body of the debtor, the liquidator of the debtor and the legal representative of the debtor. 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 arises. Unless a different amount of damage is proved, the creditor shall be presumed to have suffered damage to the extent that the creditor's claim has not been satisfied after the bankruptcy proceedings have been discontinued for lack of the debtor's assets, the bankruptcy declared on the debtor's assets has been annulled for lack of
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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