We are pleased to present this Summer 2011 edition of the CMS Restructuring and Insolvency in Europe Newsletter.

Az ENEFI és a román adóhatóság közötti jogvitában az eljáró bíróság előzetes döntéshozatali kérelemmel fordult az Európai Unió Bíróságához, melyben az uniós jog értelmezését kérte a magyarországi fizetésképtelenségi eljárás romániai joghatásával kapcsolatban. Korábbi blogbejegyzésünkben beszámoltunk az ENEFI és a romániai adóhatóság közötti jogvitában 2016.

Short stories

Amendments to the Czech Insolvency Act 2016

The International Centre for Settlement of Investment Disputes (ICSID) has recently rendered a decision in a dispute between the Portuguese investor Dan Cake and Hungary. The dispute was based on a bilateral investment agreement between Portugal and Hungary concluded in 1992. In its decision, the Tribunal declared Hungary liable for the breach of the investment agreement. The Tribunal will decide on the amount of damages at a later date.

Dan Cake versus Hungary

• Az Igazságügyi Minisztérium 2018-ban látott hozzá az új Fizetésképtelenségi Törvény előkészítéséhez, amely kapcsán erős szakmai igények fogalmazódtak meg – többek között a reorganizáció elősegítését vagy a hitelezők nagyobb arányú megtérítését illetően.
• A 2019 nyarán hatályba lépett Szerkezetátalakítási Irányelv lehetőséget biztosít egy eddig a magyar jogban nem létező eljárás, az ún.

Although no insolvency law-specific regulatory changes have been introduced in Hungary due to COVID-19, the Hungarian Government has adopted numerous extraordinary measures that may have a profound effect on how companies deal with solvency and liquidity related problems under the new circumstances.

Firstly, although the bankruptcy procedure is to be initiated by the management of the company, the prior approval of the main body of the company (ie the shareholders) is required. Due to the curfew currently in effect, in-person shareholders’ meetings are mostly prohibited.

Summary

The Hungarian Ministry of Justice acknowledged the recent criticism aimed at the difficulties regarding the enforcement of monetary claims in the country and plans to amend the relevant laws to make creditors' lives easier. As currently envisaged, these amendments will in the near future change such fundamental laws as the Civil Code, the act on court enforcement, and the act on insolvency and bankruptcy proceedings. This article provides a summary of the envisaged amendments.
 
Civil Code

Hungarian insolvency law provides for a right of the liquidator to terminate, with immediate effect, contracts concluded by the debtor, or – in case neither of the parties rendered any services – to rescind the contract. This applies even in cases where contractual provisions or relevant legislation would otherwise prohibit the termination of the given contract.

The Facts

The debtor borrowed significantly from leading domestic investment banks to finance a major construction project. The loan was secured by a pledge established on all of the debtor’s existing and future claims, including rental fees arising from an office building owned by the debtor.

What Happens to Pledges over Receivables when the Pledgor goes into Liquidation?