BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SLOVAKIA] 82
➢ In each group of the creditors with related claims and subordinated creditors, a supermajority of the voting creditors in that group, counted according to the number of claims, voted in favour of the adoption of the public plan, ➢ In each group of the shareholders, a majority of the shareholders voted in favour of the adoption of the public plan. If any of the groups does not approve the restructuring plan, the debtor is entitled to ask the court to confirm the plan, i.e., to substitute the consent of that group by a court order. The disapproving creditor has the right to comment on the proposal of the restructuring plan. If the court confirms a restructuring plan it is binding for the debtor and the affected creditors and the debtor's statutory body must exercise the plan and refrain from any action that may frustrate or impede its orderly or timely implementation. For greater certainty that the debtor will follow the restructuring plan, the plan may establish a supervisory administration by a supervisory trustee to supervise and control the debtor's business activities until the restructuring plan is accomplished. (3) Temporary protection In addition to the application for public preventive restructuring, the debtor may also apply for “temporary protection ” , which provides time and material space for effective restructuring. The temporary protection may be granted for a period of 3 months and with the consent of the creditors it may be extended up to 6 months in total. The temporary protection must be approved by: • a majority of creditors, calculated as per their outstanding claims; or
• at least 20% of all creditors, calculated as per the amount of their unrelated outstanding claims, and provided that partial remission of the claim or the recognition of its partial unenforceability does not exceed 20% of any creditor's claim in the draft plan and the deferral of repayment of any claim does not exceed one year. During the temporary protection, the debtor is obliged to limit its activities to those not materially altering composition of its assets, liabilities or obligations; any other activity is subject to the consent of the creditors' committee. Effects of the temporary protection: a) Active bankruptcy immunity – The debtor is not obliged to file for a bankruptcy proceeding during the temporary protection. This is without prejudice to the information obligation of the debtor's statutory body to inform the court and the creditors on the bankruptcy; b) Passive insolvency immunity – During the period of temporary protection, the debtor cannot be declared bankrupt or restructured and the related proceedings are suspended; c) Execution immunity – No enforcement proceedings can be brought against the debtor (except for the statutory claims); d) Priority of the satisfaction of new and unrelated liabilities ; e) Temporary impossibility to exercise security rights related to the property of the debtor , which however does not apply to the claims of the debtor's employees from employment relations; f) Prohibition of setting off a related-party claim against the debtor (related claims of the debtor's statutory body, proxy, a person
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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