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COMPULSORY SETTLEMENT, BANKRUPTCY AND LIQUIDATION The essential characteristic of bankruptcy proceedings is the possibility of the financial reorganisation of a company in compulsory settlement proceedings. This provision enables the implementation of statutory reorganisation, the rationalisation of business activities, and the establishment of sound capital links with other companies.Bankruptcy proceedings are initiated against those debtors with a long history of insolvency or of being heavily encumbered by debts. Bankruptcy proceedings cannot be initiated against debtors with only one creditor. The proposal for the commencement of bankruptcy proceedings may be filed by: Debtors are defined as sole traders, commercial companies, cooperatives, state-owned companies, and other legal and natural persons determined by special acts. Insolvent debtors or debtors heavily encumbered by debts may suggest compulsory settlement to creditors before the initiation of bankruptcy proceedings. Once bankruptcy proceedings have been initiated, an insolvent estate is formed, comprising the whole of the debtor's property. In the case of partnership, this also includes the personal property of personally liable partners. Bankruptcy proceedings cannot be initiated against debtors whose property value is not sufficient to cover the costs of the proceedings. Bankruptcy proceedings are heard by the competent court in the town in which the company in question is located. After obtaining the opinions of the creditor's board and administrator, and on the basis of an expert opinion, the senate may proceed with the sale of the debtor as a legal person by public auction or a call for bids. The decision on sale must contain the following: the mode of sale, the price, the deadline for payment, the amount (not less than 10 per cent) and the methods of paying deposits, methods of transfer and payment guarantees (not longer than six months after the conclusion of the sales agreement). All data concerning the initiation and termination of bankruptcy proceedings is entered in court register. Source: Compulsory settlement, bankruptcy and liquidation act, Official Gazette of the Republic of Slovenia, no. 67-2464/1993 |
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JAPTI - Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments disclamer |