BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SLOVAKIA]
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assets, or the execution or similar enforcement proceedings against the debtor have been discontinued for lack of assets. A penalty must be enforced by the bankruptcy trustee against a person who has breached his/her obligation to file a bankruptcy petition on behalf of the bankrupt company in due time. Failing to pay the fine carries the same consequences as we have described for breaches of the information obligation in the public preventive restructuring proceedings. The creditor is also entitled to file a bankruptcy petition if it can reasonably assume the insolvency of its debtor or if the debtor is presumed to be bankrupt due to the publication of a notice in the Commercial Bulletin (e.g. a notice of dissolution of a company, notice of termination of the enforcement proceeding). In contrast to preventive restructuring proceedings, both the restructuring proceedings and bankruptcy proceedings resolves all of the debtor's claims. Both processes are strict and formal, which require the full cooperation of the debtor itself. For your information, the restructuring process lasts in Slovakia, in general, for one year; bankruptcy usually lasts even several years. In Slovakia, restructuring proceedings used to be unsuccessful, the process does not lead to the debtor's recovery, generally many companies move to bankruptcy, it only prolongs the time and narrows the creditors' satisfaction rate. The protection of the debtor in both proceedings cover the debtor itself and its assets before all its creditors. Each submitted claim shall be examined by the trustee and compared with the debtor's accounting and list of obligations. In both proceedings, the protection of the debtor lasts during the entire process till its ending by court decisions. Bankruptcy proceedings as the only one of the mentioned forms of proceedings means the de
facto termination of the activity of the legal entity, since after the scope of the application is fulfilled, the deletion from the Commercial register occurs. Bankruptcy trustee The conditions and functions of the bankruptcy trustee are regulated by special Act No. 8/2005 Coll. on bankruptcy trustees, which also determines the requirements for the person of the bankruptcy trustee, who will be able to be appointed in particularly difficult bankruptcy or restructuring proceedings. Only a person who is professionally qualified, has had at least three years of professional practice in law or economics and has passed a trusteeship examination may be a trustee. The trustee has the power of supervision over the debtor, the duty of information to the court and creditors, the duty to examine the debtor's acts and the duty to draw up a written report to be sent to the court.
This overview is for information purposes only.
Under no account can it be considered as either a legal opinion or advice on how to proceed in particular cases or on how to assess them. If you need any further information on the issues covered by this overview, please contact Ms. Kristína Ňaňková (nankova@peterkapartners.sk) or Ms. Nicole Šrolová (srolova@peterkapartners.sk). PETERKA & PARTNERS is a full-service law firm operating in Central and Eastern Europe providing one-stop access to an integrated regional service. The firm provides legal services to multinational companies active in the region, as well as leading local groups, providing them with complex legal solutions with exceptional commercial value.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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