Implementation of the EU-restructuring directive in Slovakia
The implementation of the restructuring directive is currently underway. The implementation should take place either on the basis of a draft law on the amendment of law no. 7/2005 coll. on insolvency and restructuring or on the basis of a completely new legal act on the regulation of insolvencies and restructuring.
For the purpose of combating the economic consequences of the COVID-19 pandemic, a law no. 421/2020 coll. on the temporary protection of companies in financial difficulties has already been adopted. This law has already implemented individual requirements of the restructuring directive. The law gives the company the opportunity to make an application for temporary protection. If the legally established conditions are met and the application meets the legally prescribed requirements, the competent court will immediately issue a certificate of temporary protection to the applicant. In this context, no insolvency proceedings can be opened against the company. The law also provides for restrictions for the enforcement against the company or the termination of certain contracts. In addition, regulations were introduced to privilege the satisfaction of new claims from the loan financing that the company receives during the period of temporary protection. However, since not all the requirements of the restructuring directive were met by means of the aforementioned law, it cannot be claimed that the directive has been fully implemented in the Slovak legal system.
In particular, the goal of the correct implementation should be to simplify, streamline and accelerate smaller insolvency proceedings, to optimise the restructuring overall, and to regulate questions in connection with the specialisation of the competent authorities within the framework of the restructuring of large companies. However, the exact framework for the implementation of the restructuring directive in Slovakia remains to be developed and published.
Autor: Monika Wetzlerová-Deisler