Global Insolvency | Daily News Headlines on Insolvency Developments across the Globe

Ground-breaking Czech Supreme Court decision on balance-sheet insolvency by Petr Sprinz

The definition of insolvency is a key element of the insolvency law. It opens the gate for tools that enable creditors to safeguard their rights vis-à-vis their debtors. On 19 August 2019, the Czech Supreme Court published a ground-breaking decision which addresses a crucial aspect of balance-sheet insolvency. Many other issues, however, still remain unresolved.

As in other jurisdictions, the Czech Insolvency Act anticipates two forms of insolvency: cash-flow insolvency (illiquidity test) and balance-sheet insolvency (overindebtedness).

Country reports from the Czech Republic and Germany by Petr Sprinz, Jiří Rahm, Michael Thierhoff and Axel Roth

The Czech Republic: In January, an amendment to the Bond Act came into effect. The amendment prepared by the Czech Ministry of Finance comprises new rules governing secured bonds as well as the introduction of a security agent in connection with bonds.

German ESUG: In 2012 the German legislator enacted a landmark reform of the German Insolvency Code aiming at three main goals...

Bank insolvencies in Central and Eastern European legislation by Dr. Richárd Bódis

The financial crisis of 2008 affected the economic players more than ever, with the winding-up of a large number of financial institutions worldwide. Due to the specialisation of banks among other legal entities, insolvency is a scenario to be avoided, with restructuring being the more favourable solution.

Country Report_Czech Republic: The 2017 Amendment to the Insolvency Act and its possible effects on statistics - by Petr Sprinz

As has been pointed out in previous issues of Eurofenix, an extensive amendment to the Insolvency Act took effect on 1 July 2017 (2017 Amendment).

Debt relief under the amended Czech Insolvency Act

On 1 June 2017, a significant and extensive amendment to the Czech Insolvency Act came into force which brought, among other things, changes to debt relief as a means of resolving insolvency. The Insolvency Act in its previous manifestation determined that a debtor’s debt due to business operations does not prevent the resolution of the debtor’s bankruptcy by debt relief providing that the creditors of the corresponding receivables give their consent.

Country report from the Netherlands

The Dutch Minister’s announcement of a multi-disciplinary approach to combat bankruptcy fraud has lead to a legislative programme that went into force last year, wherein the duty of the trustee is extended to combat bankruptcy fraud.

The Czech Republic Report: Creditors with secured contingent and future claims have gained more certainty

On 1 July 2017, an extensive amendment to the Insolvency Act shall take effect. The amendment brings several substantial changes to a number of aspects pertaining to insolvency proceedings, including security of future or contingent claims (including bank guarantees), the assessment of a company’s insolvency and the discharge from debts.

Czech Republic: Insolvency Act undergoes substantial overhaul

On 1 July 2017, a far-reaching amendment to the Czech Insolvency Act will come into force.

Country Reports Spring 2017

The decision from the Court of Appeal was handed down on 1 March 2017 and has confirmed that if a trust is created by an IVA that trust will continue in the absence of specific terms to bring it to an end. This is despite a debtor having received his certificate of discharge and confirmation that he has no liability to IVA creditors.

SR - Czech Republic - Frivolous insolvency motions recognised as criminal offence

According to a ruling by the Czech Supreme Court, filing a motion for the initiation of insolvency proceedings on the basis of knowingly false information (i.e., what is known as a “frivolous insolvency motion”) may qualify as a criminal offence – that of defamation.