Corporate Recovery & Insolvency

Recent Articles

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  26/04/2024

  Turkiye

  Proposed EU Directive on Harmonisation of Insolvency Law could safeguard Turkish creditors, if adopted

  Insolvency proceedings and avoidance actions play a significant role in safeguarding creditors' interests and maximising the insolvency estate in Türkiye. The European Commission's Proposal for a Directive (COM (2022)702) aims to harmonise contestation rights in insolvency across EU member states. Although Türkiye is not an EU member states, Türkiye has similar avoidance actions regulated under its own insolvency legislation, the Turkish Enforcement and Bankruptcy Law (EBL).OverviewSimilar to the EU’s proposed Directive, the EBL contains provisions for the annulment of transaction...

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  26/04/2024

  Croatia

  Contestation rights in Croatia and the impact of the EU’s insolvency law draft Directive

  Regarding the draft Directive proposed by the European Commission that harmonises facets of insolvency law, it is worth noting that the draft Directive does not prevent EU member states from maintaining or adopting provisions that offer greater protection to creditors than those outlined in the Directive. Since the existing Croatian law framework on contestation rights provides numerous and detailed rules that go beyond the draft Directive, its implementation is not expected to require extensive or substantial modifications.Legal acts intentionally detrimental to creditor (Art. 8)The acts of the...

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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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