On 7 December 2022, the EU Commission published a draft directive harmonising certain aspects of insolvency law, which is now undergoing EU legislative procedure. In light of this the proposal, this article provides an overview of the current state of avoidance rights regulation under the insolvency legal framework in Bosnia and Herzegovina.

Insolvency avoidance rights regulation in Bosnia and Herzegovina

In response to the proposal by the EU Commission on 7 December 2022 that an EU Directive be issued to harmonise certain aspects of insolvency law, this article provides a look into one of the main topics of the draft directive – pre-pack reorganisation proceedings as regulated in Serbia, Montenegro, and Bosnia and Herzegovina, which are candidate countries for accession to the EU.

This Article was originally published in Issue 7.2 of the CEE Legal Matters Magazine.

Restructurings, especially those involving multiple jurisdictions, are invariably complex matters. This CMS Expert Guide provides an overview of the various restructuring possibilities available in a large number of countries, allowing you to compare how the options are deployed in these jurisdictions.

We intend to update it periodically to reflect important changes as they happen.

If you need more information or have any questions, please do not hesitate to contact us.

Introduction

As of 1 January 2015, the Au;trian criminal procedure code ("StPO") ctifferentiates between      suspects     (Verdachtiger)      and

subJect    to    loose    and    unsubstantiated

The new legislation on liquidation proceedings in Republika Srpska (Zakon o likvidacionom postupku “Official Gazette of Republika Srpska”, no. 82/19) (“New LPA“) comes into force on 12 October 2019. It introduces new, simplified, form of voluntary liquidation of companies and other business entities, and detailed rules on liquidation of assets and claims settlement in ordinary liquidation proceedings.

Simplified liquidation proceedings

On the 30th of December 2016, the application of the Law on Financial Operations (Law) will commence in the Federation of Bosnia and Herzegovina. The Law is intended to ensure the proper functioning of the internal market by introducing adequate and systematic risk management measures and solvency measures, as well as to promote the competitiveness of local commercial enterprises by legislating a culture of prompt payment.

To whom does it apply?

The Constitutional Court of FBiH has found that the current order of settlement of workers' claims in bankruptcy proceedings is unconstitutional.

With Judgment U-27/15, the Court declared articles 33 and 40 of the Law on Bankruptcy Proceedings (FBiH Official Gazette, nos. 29/03, 32/04 and 42/06) unconstitutional, which considerably affected the order of settlement of creditors in bankruptcy proceedings. 

The High Court considers questions relating to the location of three companies' COMIs and an alleged "improper motive" regarding the appointment of administrators

The National Assembly of Republic of Srpska adopted a Law that regulates the deadlines for settlement of financial obligations and penalties applicable in case of failure to comply. The law – published in the Official Gazette no. 31/18 – is effective as of 24th April 2018. The Law applies to legal entities on the territory of Bosnia and Herzegovina, with the exception of financial institutions, economic entities under insolvency proceedings or economic entities under garnishment or foreclosure. The main novelties introduced by the Law concerning commercial transactions are as follows: