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Status as of 17/02

Table of Content

  • 1 Financial Support Measures
  • 2 Capital Markets
  • 3 Employment
  • 4 Real Estate & Construction
  • 5 Tax & Duties
  • 6 Corporate, M&A
  • 7 EU & Competition
  • 8 Courts and Authorities
  • 9 Healthcare
  • 10 Insolvency & Restructuring
  • 11 Insurance
  • 12 Intellectual Property
  • 13 Telecom & Data Protection
  • 14 Other

1 Financial Support Measures

In light of a number of recent High Court decisions, Andy Creer considers the approach of the Court when considering an application for a speedy trial.

This note considers the way in which the practice directions governing insolvency proceedings have evolved during 2020.

The Government of Hungary has proposed an amendment to Act XLIX of 1991 on bankruptcy and liquidation proceedings (Insolvency Act) aiming to modernise the procedural rules of insolvency proceedings, for example by introducing communication via email and video conferences.

Technical reliefs

Adjudication is a quick and comparatively cheap method of dispute resolution and for those reasons is attractive to insolvent companies seeking to recover debts. However, a respondent was likely to be able to restrain the insolvent company from referring the matter to adjudication on the basis that it would be futile to do so, since any positive decision was unlikely to be enforced as a result of the very fact of the company’s insolvency. Therefore, any award lacked practical utility. Following the decision of the Supreme Court in Bresco v Lonsdale, that is no longer the case.

On 28 May 2020, the Hungarian Government adopted amendments to the laws on company liquidation and forced deletion procedures to cushion the impact of the global coronavirus pandemic on the economy.

1. Changes related to liquidation

Liquidation is initiated when a company is unable to meet its financial obligations and pay off its debt. However, in Hungary, the courts do not apply an actual insolvency test before ordering liquidation but check only whether certain criteria have been met.