One of its major aims is to address defects in the law of personal insolvencies, which are a huge social and economic problem in Slovakia. Since the IARA first took effect in 2005, the number of persons who have filed for personal insolvency is lower than in other EU countries even though, at first glance, the conditions seem favourable. The amendment came into force on 1 March 2017.

Restructuring under “Slovak standards” generally means that a large company in debt makes arrangements with its banks (secured creditors), hires a responsible and effective trustee, and gets court approval for a huge debt haircut.

Mid-life crisis, couplerelation crisis…. As if this wouldn’t be enough. In Slovakia, companies can be in crisis too, now. An entirely new legal concept – a “company in crisis” has been introduced into Slovak law. According to the law, any limited liability company, joint-stock company or limited partnership, whose limited partner is not a natural person, can find itself in “a crisis”.

Under the pretext of helping certain of Váhostav’s unsecured creditors, and in response to related developments, on 23 April 2015 the parliament adopted significant amendments to the Bankruptcy and Restructuring Act (“Bankruptcy Act”) and to the Commercial Code (“Commercial Code”). The amendments have already been dubbed “Lex Váhostav”. Váhostav owes millions of euros to hundreds of unsecured creditors, many of them small and medium-sized companies that are subcontractors of Váhostav in its public procurement contracts with the government.

by David Orsula & Filip Takac Dávid Oršula and Filip Takáč discuss the issues of a non-profit organisation in Slovakia compared to other selected countries. It all started with a creditor’s objection during a creditors’ meeting as part of the restructuring of a non-profit organisation (“NPO”).

The phenomenon of insolvency tourism is becoming increasingly common in the EU amongst both natural and legal persons.