Corporate Recovery & Insolvency

Recent Articles

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  16/04/2024

  Poland

  Poland’s strict avoidance action regulations differ from EU Draft Directive

  The European Commission has published a new proposal for a Directive that would harmonise certain aspects of insolvency law across the EU. This proposal, following the enactment of Directive (EU) 2019/1023, illustrates a strong desire to facilitate the free movement of capital within Europe. A significant part of the proposed Directive is designed to make laws governing avoidance actions uniform across the EU.A review of the draft proposal indicates that Poland already has strict provisions relating to avoidance actions aimed at protecting creditors against fraudulent actions preceding the insolvency...

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  22/03/2024

  Bosnia and Herzegovina

  Avoidance rights in Bosnia and Herzegovina

  On 7 December 2022, the EU Commission published a draft directive harmonising certain aspects of insolvency law, which is now undergoing EU legislative procedure. In light of this the proposal, this article provides an overview of the current state of avoidance rights regulation under the insolvency legal framework in Bosnia and Herzegovina.Insolvency avoidance rights regulation in Bosnia and HerzegovinaBosnia and Herzegovina (BiH) consist of two distinct administrative entities: the Federation of BiH (FBiH) and Republika Srpska (RS), and the special administrative unit Brčko District of BiH...

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  22/03/2024

  Serbia, Montenegro

  Avoidance actions in Serbia and in Montenegro: An overview

  In response to the EU Commission's proposal for a directive to harmonse specific elements of insolvency law on 7 December 2022, this article explores avoidance actions, one of the Directive Proposal’s key aspects, and the way avoidance actions are regulated in Serbia and Montenegro as EU candidate countries.In the context of insolvency proceedings, avoidance actions involve the annulment of transactions undertaken by the insolvent debtor before the initiation of insolvency proceedings.Avoidance actions in SerbiaAvoidance actions in insolvency proceedings in Serbia are prescribed by the Law...

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  08/03/2024

  Bulgaria

  Bulgarian avoidance actions in line with EU Proposal

  The EU Commission issued a proposal for a Directive harmonising certain aspects of insolvency law, EU (COM(2022) 702 final. Although still being discussed, the Proposal is unlikely to result in material amendments to existing Bulgarian insolvency avoidance actions, which follows the principles set out in the Proposal and in many ways affords creditors a greater level of protection. Nevertheless, certain time periods and rules on the implementation of the avoidance actions may need to be amended in the Bulgarian law.The following article gives an overview of Bulgarian avoidance actions and highlights...

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  08/03/2024

  Slovakia

  EU Harmonisation of avoidance actions from Slovak perspective

  On 7 December 2022, the EU Commission issued a proposal for a Directive harmonising certain aspects of insolvency law. In this article, we focus on insolvency avoidance rights from a Slovak law perspective and the impact of the Proposed Directive.Avoidance rights are an important tool of creditors in enforcing their claims against a default debtor and represent a punitive threat to debtors to avoid speculative transactions. Slovak law recognises (avoidance rights under general civil law, which can be applied irrespective of insolvency if the conditions are met, and insolvency avoidance rights triggered...

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  08/03/2024

  Slovenia

  Slovenia’s perspective on the proposed harmonisation of avoidance actions in insolvency proceedings

  The proposed EU Directive on the harmonisation of insolvency law aims to establish minimum conditions for exercising avoidance actions in insolvency proceedings in order to protect the bankruptcy estate against unlawful deprivation of assets prior to the opening of insolvency proceedings. In Slovenia, existing contestation rights provide a strict legal framework to prevent such transfers of assets and the proposed Directive is expected to strengthen them.Scope of avoidance rulesThe proposed Directive was designed to prevent legal acts that harm the creditor (or group of creditors) by giving preference,...

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