On 7 December 2018, Serbian Parliament passed yet another Act on Amendments of Bankruptcy Law that will be applicable as of 1 January 2019.
These changes make the third change of the Bankruptcy Law in less then a year.
Namely, the changes enacted in December 2017 introduced, among others, provisions regulating larger extent of the creditors’ settlement, a reduction of the costs of the proceedings, many novelties regarding the provisions which regulate the procedure of reorganization in bankruptcy, as well as a shorter duration of the bankruptcy proceeding itself. Mid-2018, the Parliament enacted additional novelties that were introduces in order to harmonize the Bankruptcy Law with recently adopted Financial Security Law.
As to the recently adopted changes, at the micro-level, the reasons for introducing further novelties arose from the need to improve the legal framework for the protection of creditors’ rights in the course of the bankruptcy proceedings.
Newly amended Bankruptcy Law introduces following changes:
- a possibility for all the creditors, regardless of the value of their claims, to propose to the judge the nomination of a certain bankruptcy administrator from the list of bankruptcy administrators when submitting a petition to start the bankruptcy proceedings;
- the creditors’ assembly will now approve the appointment of the bankruptcy administrators or propose another one in case of release of duties;
- possibility for every creditor, again, regardless of the value of their claims, to request and get from the bankruptcy administrator any information on the debtor, its assets and the state of the bankruptcy proceedings.
- clear and impartial method for calculating this amount on the basis of the size and asset value of the debtor.
In the months to come it remains to be seen whether these amendments will make the desired effects and whether the yearlong reform of Serbian bankruptcy regulations has finally come to a conclusion.
Should you have any questions regarding the implementation of the newly introduced amendments or any other concern regarding this matter, please do not hesitate to contact us.