The long-discussed amendments to the Czech Insolvency Act entered into force on 1 July 2017.

These aim primarily to strengthen the transparency of insolvency proceedings; reduce paperwork in the insolvency courts; and change the system of allocation of insolvency cases in the area of debt relief.

The following highlights the most fundamental changes introduced last month.

Allocating insolvency cases

Key Points 

• Directors cannot file a notice of intention to appoint (NoI) without a ‘settled intention’ to appoint an administrator

• NoIs cannot be used where there is no qualifying floating charge holder (QFCH)

• The judgment has implications for validity of appointments where requirements not met

The Facts

Key Points 

• Claims against Kaupthing could not be pursued in the English courts

• No implied restriction on jurisdictional effect under the Winding-up Directive

• Position analogous to Judgments Regulation and Insolvency Regulation

The Facts

Key Points

Key Points

• COMI of Jersey companies held to be in England and Wales 
• Argument of improper motive generally insignificant where purpose of administration can be achieved

The Facts

Key Points

• Costs incurred in preparing to comply with disclosure orders not payable by liquidators

• Protection for wasted costs should have been sought earlier in the proceedings

The Facts

Key Points

• Provisions of the Civil Procedure Rules apply to applications for an extension of time to apply for rescission of winding up order

• Any such extensions of time should be exceptional and for a very short period

The Facts

Key Points

• A dividend is a ‘transaction’ and therefore can be challenged under s 423 IA 86
• A duty to act in the best interests of creditors does not arise simply because there is a risk of insolvency which is not ‘remote’

The Facts

Key Points

Key Points