The Czech Supreme Court recently issued two decisions having a significant impact on the position of secured creditors (i.e. generally financial institutions) within insolvency proceedings. Both decisions stem from one of the first major insolvencies conducted under the (then new) Czech Insolvency Act effective from 2008, in respect of a group of companies in a glass-making business. This article briefly reviews those decisions and points out their practical effects on the rights of secured creditors.
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