In the case, the insolvency proceedings had not been used for the purposes provided by Law 85/2006 on insolvency proceedings (Law 85) but for other purposes.

Banks in Bulgaria are seriously concerned with borrowers fraudulently manipulating their accountancy books with the effect that banks’ security interests are declared invalid and banks are declassed into ordinary (unsecured) insolvency creditors.

In times of financial difficult and a challenging market environment, establishing a restructuring trust provides an insolvencyproof structure that meets the demand of the financing banks for an immediate change of control in the com pany while ensuring a professional M&A process with an upside for all stakeholders.

BAIL-OUT DÉJÀ-VU

The Moldovan Parliament adopted a new insolvency law on 29 June 2012. The In-solvency Act No. 149 (Act No. 149), which will enter into force on 14 March 2013, is evolutionary rather than revolutionary, as its main goal appears to be the optimiza-tion of the existing insolvency procedures.

Following the new act’s entry into force, insolvency cases shall fall under the compe-tence of the court of appeal where the seat of the debtor is located. Also each such court of appeal shall hold a public register of insolvency cases.

Timing

The Austrian Act on Financial Collateral (Finanzsicherheiten-Gesetz; FinSG), which regulates the granting and enforcement of financial collateral arrangements between participants in the financial markets, has recently been amended with effect from 30 June 2011. Changes include the extension of the scope of application of the law.

Since the enactment of the new insolvency law in 2006, its proceedings have been amended many times to improve and simplify bankruptcy. In the past few years, the economic downturn has caused more and more companies to request court protection with the hope of undergoing reorganisation, realising that insolvency need not be the death of the company but, rather, a second chance.

The means of obtaining information on a person’s creditworthiness were broadened in 2011 by launching a pending execution proceedings register kept by the Bulgarian Private Bailiffs Chamber.

Capital measures are common reorganisation measures when a capital company is in financial crisis, including eg injection of fresh capital by way of a capital increase. The implementation of capital measures during financial crisis is often a source of dispute amongst shareholders, in particular if the capital measures are driven by a financially strong majority shareholder.

The Slovenian legislation includes the following types of in rem securities relating to: (i) real properties – mortgage (hipoteka), land debt (zemljiški dolg), real encumbrance (stvarno breme); and (ii) movables and property rights, respectively – pledge (zastavna pravica), retention of title (pridržek lastninske pravice), transfers by way of security (prenos v zavarovanje), and assignment by way of security (odstop v zavarovanje).