The good news is that public works construction projects for municipalities are projected to remain a major sector of construction activity for the foreseeable future. The not-so-good news is that municipal bankruptcy filings are on the rise, and they are likely to increase. The issues facing parties under contract with a municipality when it files for bankruptcy protection are playing out nationally in places like Stockton, California, and Detroit, Michigan.

From 4 August 2011 special insolvency rules now apply to those Hungarian companies which the Government classifies as “highly important” from a national economic perspective. Insolvency proceedings can be started as a special procedure.

Classification