Can a non-profit organisation go bankrupt or be restructured

by David Orsula & Filip Takac Dávid Oršula and Filip Takáč discuss the issues of a non-profit organisation in Slovakia compared to other selected countries. It all started with a creditor’s objection during a creditors’ meeting as part of the restructuring of a non-profit organisation (“NPO”). The basis of the objection was simple: “A debtor non-profit organisation may not be the subject of restructuring proceedings, because an NPO is not established for the purpose of conducting business.” Is the conducting of business activity a “conditio sine qua non“1 for the opening of insolvency or restructuring proceedings against a legal person (NPO)? This question raises more questions, and this specific case was even more interesting, because the NPO involved was the Slovak Basketball Association.