Vorinsolvenzlicher Restrukturierungsrahmen für Deutschland unter dem Einfluss der EU-Restrukturierungsrichtlinie

Under the political pressure of the COVID-19 pandemic, the German legislature implemented the EU Restructuring Directive at record speed with the StaRUG, thus creating for the first time a legal framework for corporate restructuring outside of insolvency proceedings. This study examines the highly topical transposition act in terms of its practical suitability and, on the basis of remaining regulatory gaps, develops an alternative doctrinal and structural approach that initiates further reform debates in the upcoming evaluation process. The author concludes that, de lege ferenda, German restructuring law should be enriched by a minimally invasive contractual framework that offers SMEs in particular a quick and cost-effective alternative.

Social and Legal Aspects of the Professional Status of Trustees in Bankruptcy in the Context of the Reform of the Institution of Bankruptcy in the Russian Federation

Introduction. The relevance of the research consists in expanding theoretical developments in the field of economic sociology, particularly, in prognosticating changes in the social and legal aspects of the professional status of trustees in bankruptcy in the context of the State Duma's consideration of the draft law No. 1172553-7 “On Amendments to the Federal Law ‘On Insolvency (Bankruptcy)’ and to Certain Legislative Acts of the Russian Federation”. Based on the results of the conducted research, the article identifies potential changes in the socio-professional status of a trustee in bankruptcy in the event the new law is adopted and enacted. Materials and Methods. The information base of the study included a secondary analysis of the array of statistical data on the results of insolvency proceedings in 2016-2020 in the Russian Federation (including the regional context), as well as a secondary analysis of the latest domestic legal framework governing the activities of the institution of bankruptcy. Results. The factors in the liquidation orientation of the institution of insolvency in the Russian Federation, as well as the trends in the increase in duration of insolvency proceedings with a minimum number of satisfied creditor claims have been identified; counterarguments have been presented regarding the alleged low efficiency of trustees in bankruptcy; arguments concerning the annual increase in the workload of trustees in bankruptcy have been statistically supported. A critical analysis of the draft law has been performed; the risks of decline in wages of trustees in bankruptcy in the event of adoption of the proposed changes in the structure of fixed and percentage-based remuneration have been identified. Legal gaps in the proposed point-rating system for the approval of trustees in bankruptcy have been identified. Discussion and Conclusion. The performed analysis made it possible to reveal the main trends in the results of insolvency proceedings, as well as to identify a number of critical shortcomings of the draft law No. 1172553-7 under consideration (change in the structure of remuneration for trustees in bankruptcy, as well as introduction of a rating system for evaluating their activities). The results of the study may be useful to scientists specializing in economics and law, as well as to experts in the field of insolvency.

Creditors' and Third Parties' Rights In Rem under European Union Regulations and the UNCITRAL Legislative Guide on Insolvency Law

The purpose of this article is to present the legal position of creditors and third parties secured by rights in rem. The analysis takes into consideration the situation when the bankruptcy of a debtor is declared. The purpose of the article is to present the regulation provided in European Union regulations. According to the European Union regulations, the opening of insolvency proceedings does not affect the rights in rem of creditors or third parties {to assets?} belonging to the debtor which are situated within the territory of another Member State at the time of the opening of insolvency proceedings. Therefore the question arises of whether the scale of protection of a secured creditor or of third parties' is too wide in comparison with other creditors. Moreover it is necessary to compare the European Union provisions with regulations of an international character. The provisions of the UNCITRAL Legislative Guide on Insolvency Law constitute a point of reference for a comparative analysis of this issue.

Disputes regarding the remuneration of authorized directors in insolvency proceedings

The authorized administrator, regardless of the way he is appointed, fulfills the function of representative of justice, because he represents and defends not only the interests of the debtor and creditors, but, together with the insolvency court, offers the guarantee of compliance with legal provisions and coordinates, supervises and acts in in order to carry out the procedure.

Pobojnost namjernog oštećenja vjerovnika stečajnog dužnika

It is clear from the case law of Croatian courts that intentional disadvantaging the creditors (regulated in Article 202 of the Insolvency Act) is the most commonly used ground for contesting the legal transactions of an insolvent debtor. On this ground, all legal transactions undertaken in the suspect period of as long as ten years before the submission of the application for opening (pre-)insolvency proceedings until the opening insolvency proceedings can be contested. The authorized contester, however, in litigation has a tall order of proving not only that the debtor took action with the intent to disadvantage its creditors but also that the opponent of the contestation was aware of that intent. The debtor’s intent to disadvantage its creditors and the awareness of the opponent of the contestation are both determined on the basis of objective indications that are at the heart of the analysis of this paper. Incongruent settlement, the unequal value of consideration, unusual contractual clauses, the proximity of the insolvency debtor and the opponent of the contestation, and the debtor’s (threatening) inability to pay his debts are most often recognized in case law as indications of intentional disadvantaging the creditors of an insolvent debtor. In addition to certain objections to the normative regulation of the institute itself, especially regarding the drafting of presumptions that make it easier to prove the contester’s awareness of the debtor’s intention to disadvantage its creditors, the paper presents a critical assessment of case law that could facilitate its harmonization and serve as a guide to authorized contesters as to whether it is appropriate to engage in contestation or not.

The Devil’s Laugh at Corporate Governance: The Case of Punjab and Maharashtra Co-operative Bank (PMC Bank) India

The trust of depositors in the Indian banking system was shaken in September 2019 when the five-page confession letter written by Joy K Thomas, Managing Director and Chief Executive Officer of Punjab and Maharashtra Co-operative Bank (PMC Bank), one of the ten largest co-operative banks in India revealed gross financial irregularities, collusion and fraud in banking operations of PMC Bank from 2008 onwards. The Reserve Bank of India (RBI) came into swift action and placed curbs on routine banking activities and restricted the withdrawal of money to a limited amount. Succumbing to the shock, depositors protested at several places and even, eleven depositors lost their lives. With a huge exposure of 73% of the overall loan portfolio to a single borrower, Housing and Development Infrastructure Ltd (HDIL) & group companies, that too facing insolvency proceedings, the recovery of full money was almost impossible. The malice at PMC Bank is the classic case of crony capitalism, collusion and fraud, and failure of corporate governance. The case draws important lessons for reforming co-operative banking sector and strengthening banking supervision in the country.

Problems of Determination and Payment of Bankruptcy Administration Costs

This article continues the research of peculiarities seen in the insolvency proceedings of legal entities and examines the problems of determination and payment of administrative costs of the bankruptcy proceedings of legal entities. The authors analyze the features of these costs in bankruptcy proceedings and how they can be identified. It also assesses the order in which administrative expenses must be paid in cases where the expenses do not exceed the estimate of administrative expenses, exceed it, or if assets of the legal person are insufficient to reimburse these costs.

25. Company insolvency proceedings

This chapter deals with the procedures available when a company is insolvent or facing financial difficulties. It also considers the ways in which insolvent partnerships can be subject to the same procedures as companies. The law relating to these matters is principally contained in the Insolvency Act 1986 together with the Insolvency Rules 1986, as amended by the Insolvency Act 2000 and the Enterprise Act 2002. The insolvency legislation provides four procedures for companies in financial difficulties: administration, voluntary arrangement, receivership, and liquidation.