Search

This study examines the interaction between insolvency proceedings and strategic variables and their relationship with firm survival. Unlike previous research, this study considers the firm's legal status, including insolvency proceedings, and fills a gap in the literature by considering legal considerations in business studies. Adopting a legitimacy perspective, we employ a Cox proportional hazards model to construct a survival model based on a theoretical framework encompassing insolvency proceedings retrenchment, firm age, and causes of financial distress. Our sample consists of French SMEs facing financial difficulties. The findings reveal that initiating insolvency proceedings is negatively associated with firm survival. However, retrenchment of employees or assets during insolvency proceedings is associated with a higher likelihood of survival. Contrary to expectations, firm age showed a negative association with firm survival during the insolvency proceedings. Moreover, the study revealed a positive association between insolvency proceedings and firm survival in cases of firm-specific financial distress. This research provides new insights into the relationship between insolvency proceedings and firm survival. Plain English Summary: What are the conditions for an SME to survive insolvency proceedings? This study addresses this question by investigating the interaction between insolvency proceedings and the various factors that influence a firm's ability to survive. It fills a gap in the literature by considering the firm's legal situation, which offers a new context for action in the case of insolvency. The study finds that starting insolvency proceedings negatively affects a firm's survival, but retrenchment of employees or assets during proceedings can improve the chances of survival. Surprisingly, the study finds that firm age negatively impacts firm survival during proceedings. However, insolvency proceedings have a more favorable effect on firm survival in cases of firm-specific financial distress. The findings have practical implications for executives and boards as the outcome of a retrenchment strategy may vary based on whether it is executed in or outside of court, and insolvency proceedings can provide legitimacy for specific strategies. [ABSTRACT FROM AUTHOR]

Copyright of Collected Papers of the Law Faculty of the University of Rijeka / Zbornik Pravnog Fakulteta Sveučilišta u Rijeci is the property of Pravni fakultet Sveucilista u Rijeci and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article is dedicated to examining the problematic aspects that arise in practice concerning the formation, execution, and reimbursement of costs associated with insolvency proceedings for small and mediumsized enterprises and developing proposals to address these issues. Special attention is given to the analysis of the current insolvency legislation in Ukraine, identifying its shortcomings in regulating the composition of expenses in bankruptcy cases, the mechanisms for covering these costs, and the determination of their funding sources. The authors argue that the feasibility of applying bankruptcy procedures, an objective assessment of their effectiveness, and the independence of insolvency practitioners largely depend on the provision of adequate financing for the costs associated with insolvency proceedings. The article highlights the specifics of applying bankruptcy procedures in situations where the debtor lacks sufficient assets to cover the expenses associated with the proceedings. The author proposes the introduction of a new simplified liquidation procedure that provides for minimal implementation timelines and reduced costs. Such a procedure has the potential to significantly alleviate the financial burden on debtors and simplify the process for insolvency practitioners. The relevance and necessity of urgently improving the regulatory framework governing the costs associated with insolvency proceedings are substantiated, along with the comprehensive provision of debtors with effective legal instruments to resolve their obligations in a state of insolvency. Based on the conducted research, practical recommendations have been developed for amending the insolvency legislation. These proposals include standardizing the list of expenses, improving the mechanisms for advancing costs, introducing more efficient methods for covering expenses and ensuring the timely payment of costs associated with insolvency proceedings. Thus, the article aims to contribute to the further improvement of Ukraine's insolvency legislation, enhancing its effectiveness and ensuring greater legal certainty for all participants in the bankruptcy process. [ABSTRACT FROM AUTHOR]

This article analyses the fallout of promoter liability in insolvency cases, focusing on Delhi NCR to highlight that promoters need to bear accountability and transparency in corporate governance. Case studies: Lalit Mishra & Ors v/s Government of NCT Delhi In the matter of Sharon Bio Medicine Ltd. and Angel Promoters Pvt, In the shadow of Bhushan Steel Ltd., the article demonstrates, how promoters are really in between this puzzle before IBC. While this case is concentrated in the real estate industry, parties on both sides of deals are aware that fraudulent activity and undervalued transactions can be prohibited if due diligence requirements to prevent mishandled closings have system controls for properly preventing widely material overpay statements. The results imply that bolstering the enforcement aspect of promoter liability, in conjunction with setting up dedicated NCLT benches, can help speeding the resolution process and safeguard economist interests. The article ends by providing some future outlook on the forthcoming restructuring of Indian insolvency law and suggests coming reforms to hold promoters more accountable through a mechanism that would bolster ease in India's IBC framework. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Derecho Privado (0123-4366) is the property of Universidad Externado de Colombia, Departmento de Derecho Civil and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Thanks to globalisation, but also to free movement, an international element is emerging in many insolvency proceedings dealing with the debtor's insolvency and its resolution. The authors of the article examine the legal framework that is applied when the international element has a relationship with the countries of the European Union and the legal framework that is applied when the international element has a relationship with countries that are not members of the European Union. In such cases, the legal regulation used is different. The paper sets out its common features and differences. [ABSTRACT FROM AUTHOR]

Copyright of Revista Chilena de Derecho is the property of Revista Chilena de Derecho and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Civil procedural law had to react quickly to the Covid-19 pandemic to ensure that litigants had access to the court system despite the closure of court buildings. In Hungary, e-trials were made possible by special government decisions, which were interpreted by the Supreme Court (Kúria) to help lower courts to develop uniform case law. As a result of the Digital Courts Programme launched in 2018, the computerisation of courts and judges was in a good state at the time of the outbreak, which helped greatly to address the situation. The paper examines changes in Hungarian civil procedure law during the first three waves of the pandemic in a chronological manner. In its conclusions, it takes stock of the changes that can enhance access to the justice system and legal entities, even after the epidemic.

Applying indirect methods to determine the taxable income of insolvent companies has raised various legal issues and led to unclear and potentially unlawful interpretations by the Portuguese tax authorities ("PTA"). Although recent case law has provided some guidance on the limited and especially exceptional circumstances in which indirect taxation methods can be applied to insolvent companies, there is still some way to go to achieve legal certainty and for the PTA to follow higher courts' case law. This article analyses when the PTA can resort to indirect taxation methods to determine the taxable income of insolvent companies. [ABSTRACT FROM AUTHOR]

Purpose: The aim was to analyze insolvency proceedings in Germany, Croatia and Slovakia and answer the research question whether insolvency proceedings are opened too late in the observed countries and how this issue can be explained. Methodology: Comparative analysis of insolvency systems in Germany, Croatia, and Slovakia was conducted. Furthermore, the financial profile (liquidity) of firms in pre-insolvency and insolvency proceedings in Germany, Slovakia and Croatia was analyzed and respective results were compared with data on government effectiveness and the rule of law in the observed countries. The one-way ANOVA was performed to test the differences in liquidity among companies that initiated pre-insolvency and insolvency proceedings. Results: The results indicate that German companies respond to signs of crises earlier in comparison to Croatian and Slovakian companies and these differences cannot be explained only by criminal law measures which are not equally effective across jurisdictions, but they depend to a large extent on government effectiveness and the rule of law in a country. Conclusion: The results show that despite the similarities in the civil law frameworks, insolvency proceedings in Croatia and Slovakia are still initiated on average much later than in Germany. Moreover, according to the results, criminal law sanctions against the late initiation of insolvency proceedings can have preventive effects. However, while they can increase the number of timely insolvency proceedings, their effectiveness is still limited by the efficiency of the judicial system measured by the strength of institutions and their consistent application. [ABSTRACT FROM AUTHOR]

AbstractInsolvency proceedings are strategic for the competitiveness of a national economy. The new law, but also new financial situation of organizations affect the new normal of insolvency framework. In Europe, standards aimed at creating an efficient framework for corporate insolvency resolution are constantly changing to enhance the efficiency of such mechanisms. This pursuit contrasts with the lack of specific efficiency data available to both legislators and researchers, there are no solid statistics to investigate the phenomenon from the perspective of its efficiency, which makes it impossible in practice to investigate its explanatory variables. Previous studies have led us to reflect on key information asymmetry and adverse selection problems resulting from a gap between the new challenges on insolvencies processes and options, because the lack of information. Based on this reflection, we have identified parallelisms between the lemon market, and current insolvency proceedings in Spain. Although, the legal system is modified, the insolvency process itself is a drag, for the achievement of the long-awaited efficiency of the process. It will be necessary to change, not only the legislation, but also the information provided, and create a new insolvency system because actual has “lemons signals”, this circumstance is producing negative effects on the efficiency and competence of a key figure in the process: the insolvency administrator.

Purpose: The aim was to analyze insolvency proceedings in Germany, Croatia and Slovakia and answer the research question whether insolvency proceedings are opened too late in the observed countries and how this issue can be explained. Methodology: Comparative analysis of insolvency systems in Germany, Croatia, and Slovakia was conducted. Furthermore, the financial profile (liquidity) of firms in pre-insolvency and insolvency proceedings in Germany, Slovakia and Croatia was analyzed and respective results were compared with data on government effectiveness and the rule of law in the observed countries. The one-way ANOVA was performed to test the differences in liquidity among companies that initiated pre-insolvency and insolvency proceedings. Results: The results indicate that German companies respond to signs of crises earlier in comparison to Croatian and Slovakian companies and these differences cannot be explained only by criminal law measures which are not equally effective across jurisdictions, but they depend to a large extent on government effectiveness and the rule of law in a country. Conclusion: The results show that despite the similarities in the civil law frameworks, insolvency proceedings in Croatia and Slovakia are still initiated on average much later than in Germany. Moreover, according to the results, criminal law sanctions against the late initiation of insolvency proceedings can have preventive effects. However, while they can increase the number of timely insolvency proceedings, their effectiveness is still limited by the efficiency of the judicial system measured by the strength of institutions and their consistent application.

A bond is a debt security, under which its issuer undertakes to repay to the bondholder the principal of the bond and the interest (the coupon) at a specified point in time, which is to be considered as the redemption of bonds. Bonds have several types: bonds issued by the public sector, bonds issued by capital companies, publicly available bonds, private bonds, convertible bonds, contingent convertible (CoCo) bonds, exchangeable bonds, exchange bonds, callable bonds, subordinated bonds, etc. In economic circulation, subordinated bonds are widespread securities. The subordinated obligation in the bond distinguishes the subordinated bond from other bonds. At the same time, the underlying relationship entails significant risks for the fulfilment of the obligations arising from the bond, which is outweighed by the higher profitability of such bonds. However, there are cases where the obligations arising from subordinated bonds are never met. Such cases may be based not only on the insolvency of the issuer of the subordinated bonds but also on the existence of State aid received by the issuer. In view of the recent financial difficulties of several banks, the likelihood of an issuer that has received State aid being able to meet its obligations under subordinated bonds becomes a particularly acute matter.

Copyright of Themis: Revista de Derecho is the property of Themis Asociacion and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

A bond is a debt security, under which its issuer undertakes to repay to the bondholder the principal of the bond and the interest (the coupon) at a specified point in time, which is to be considered as the redemption of bonds. Bonds have several types: bonds issued by the public sector, bonds issued by capital companies, publicly available bonds, private bonds, convertible bonds, contingent convertible (CoCo) bonds, exchangeable bonds, exchange bonds, callable bonds, subordinated bonds, etc. In economic circulation, subordinated bonds are widespread securities. The subordinated obligation in the bond distinguishes the subordinated bond from other bonds. At the same time, the underlying relationship entails significant risks for the fulfilment of the obligations arising from the bond, which is outweighed by the higher profitability of such bonds. However, there are cases where the obligations arising from subordinated bonds are never met. Such cases may be based not only on the insolvency of the issuer of the subordinated bonds but also on the existence of State aid received by the issuer. In view of the recent financial difficulties of several banks, the likelihood of an issuer that has received State aid being able to meet its obligations under subordinated bonds becomes a particularly acute matter. [ABSTRACT FROM AUTHOR]

Civil procedural law had to react quickly to the Covid-19 pandemic to ensure that litigants had access to the court system despite the closure of court buildings. In Hungary, e-trials were made possible by special government decisions, which were interpreted by the Supreme Court (Kúria) to help lower courts to develop uniform case law. As a result of the Digital Courts Programme launched in 2018, the computerisation of courts and judges was in a good state at the time of the outbreak, which helped greatly to address the situation. The paper examines changes in Hungarian civil procedure law during the first three waves of the pandemic in a chronological manner. In its conclusions, it takes stock of the changes that can enhance access to the justice system and legal entities, even after the epidemic. [ABSTRACT FROM AUTHOR]

The analysis of the opening of insolvency proceedings under European Union law involves the identification of incidental rules applicable to the insolvency proceedings with an element of foreignness when it concerns the Member States. In order to ensure a comprehensive understanding of cross-border insolvency proceedings, it is necessary to analyze the relevant rules in the field of private international law, when the international character of the insolvency legal relationship is reflected in relation to another third country of the European Union.

The celerity of insolvency proceedings required the establishment of a derogatory regime from the common law as regards the fulfillment of the formalities for citation the parties and communicating the procedural documents, due to the fact that it involves a large number of parties and procedural acts, and the application of the general regulations would only slow conducting the proceedings. Within the insolvency proceedings, the citation and respectively, the communication of the procedural documents can be accomplished in three ways: according to the Code of Civil Procedure, by publishing the procedural act in the Bulletin of insolvency proceedings, or in both ways. The choice made by one of the participants in the insolvency proceedings of a procedural domicile in the course of insolvency proceedings may not be relied on in relation to other participants in the insolvency proceedings as a whole, neither before a court settling an associated case. Manifestation of the will of a participant at insolvency proceeding regarding the choice of a procedural domicile produces effects only in the trial of that case in the insolvency proceedings, remaining irrelevant for the settlement of other cases in connection with the same insolvency proceedings.

This article addresses the relationship between environmental law and insolvent companies. The author will analyze the incidence of preventive measures in current national legislation and will identify its applicability in regards to insolvency proceedings. The article is structured in two parts. The first part aims to define and identify the particularities of preventive measures under environmental law as well as the environmental liability of companies, followed by the second part that highlights the obligations that insolvent companies have in order to prevent environmental damage by linking the provisions of Law No. 85/2014 on insolvency prevention and insolvency procedures with the provisions of the Government Emergency Ordinance No. 68/2007 on environmental liability with regard to the prevention and repair of environmental damage.

Copyright of Pravnik is the property of Czech Academy of Sciences, Institute of State & Law and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista de Derecho UNED is the property of Editorial UNED and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Romanian Review of Private Law / Revista Română de Drept Privat is the property of Universul Juridic Publishing House and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Under Romanian law, insolvency shall be initiated at the request of the persons entitled, usually the debtor or the creditor. After checking the fulfilment of the legal conditions, the syndic judge will order the opening of insolvency proceedings as well as the measures to be taken to know precisely the financial situation of the debtor, the causes that led to the situation of insolvency and the way forward, i.e. the general or simplified procedure. The judicial administrator draws up a report based on which the syndic judge shall decide either the continuation of the general procedure in order to observe the chances of recovery of the debtor on the basis of a reorganization plan or the transition to the simplified procedure: the bankruptcy procedure. In the first case – that of the general procedure – a reorganization plan will be applied, leading to the improvement of the debtor's activity and the payment of the debts to its creditors; in the second case, there are some steps that will lead to the liquidation of the debtor's estate to cover the claims of the creditors. Without claiming to analyses the topic extensively, the article aims to underline the most important aspects about entering the insolvency procedure.

By means of this article the author, will analyse the incidence of the fundamental principle of environmental law “polluter pays” in the current national legislation and will identify its applicability, especially in what concerns insolvency proceedings. The article is structured in three parts. The first part aims to define and identify the particularities of this principle in both contemporary Romanian law and International law. The second part points out how the company's liability for environmental damage can be attracted in each of the phases of the insolvency proceedings. The third part correlates the provisions of Law No. 85/2014 with the provisions of Government Emergency Ordinance No. 68/2007 on environmental liability by formulating a de lege ferenda proposal designed to increase the efficiency of environmental damage coverage in insolvency proceedings.

The analysis of the opening of insolvency proceedings under European Union law involves the identification of incidental rules applicable to the insolvency proceedings with an element of foreignness when it concerns the Member States. In order to ensure a comprehensive understanding of cross-border insolvency proceedings, it is necessary to analyze the relevant rules in the field of private international law, when the international character of the insolvency legal relationship is reflected in relation to another third country of the European Union. [ABSTRACT FROM AUTHOR]

Cross-border insolvency is configured when insolvency proceedings are initiated and the debtor's assets are located in more than one State or there are foreign creditors. As this situation of patrimonial crisis involves several jurisdictions, nations have come to sign international agreements and reinforced their internal regulations in order to establish mechanisms that allow these conflicts to be resolved. In order to facilitate the foregoing, the United Nations Commission for the Development of International Trade Law prepared the Model Law on cross-border insolvency, whose provisions have been incorporated into the bankruptcy laws of different countries as it contains valuable rules that make possible the coordination of insolvency proceedings, the recognition of a foreign insolvency proceeding, and the access of foreign creditors and representatives to the courts of another State to participate in a process of this nature. In the case of Cuban legislation, insufficient regulation of cross-border insolvency is evident, which has a negative impact on its resolution. As a result of this problem, the present study pursues the following objective: to establish, based on a theoretical and doctrinal analysis, the need to update and improve the aforementioned regulation in Cuba both in the field of domestic law and in conventional international law. [ABSTRACT FROM AUTHOR]

Liquidation plays a key role within insolvency proceedings, as it consists in the sale of the assets of the insolvent estate. In this article, we aim to provide an overview of the main issues and difficulties that, in practice, arise at the time of liquidation. Therefore, by providing a framework for the general regime, we seek to address, on the one hand, those cases which, in some way, "deviate" from normal proceedings and, on the other hand, situations which require greater caution. [ABSTRACT FROM AUTHOR]

This article analyzes the concept of viability and its interpretation in insolvency law in relation to the restructuring of enterprises where creditors provide financial support in order to avoid bankruptcy. The significance of viability in insolvency law is assessed, as this concept is regulated by international legal acts regulating insolvency proceedings, i.e. European Union law. The complex nature of viability and the assessment of the economic situation of the company are analyzed. The author also examines the precise meaning of viability when applying the Law on Insolvency of Enterprises of the Republic of Lithuania, and the objectives and economic justification for the establishment of this concept. The author asserts that viability is an economic category, the assessment of which requires not only legal, but also special economic, financial, and market knowledge. Recent case law on the interpretation and application of the viability condition in the restructuring process is analyzed. Moreover, the author suggests which circumstances may prove the non-viability of the enterprise and when bankruptcy proceedings should be commenced.

This article examines the institute of the creditors’ committee in insolvency proceedings. When evaluating the experience of foreign countries in regulating this institute and solving problems arising from the respective regulation, the legal regulation of this institute and the peculiarities of the application of these provisions are analyzed and evaluated.

This article examines some practical problems of the application of the Law on the Insolvency of Enterprises of the Republic of Lithuania related to the effectiveness of insolvency proceedings. Though the new insolvency law seeks to ensure effective insolvency process, the analysis of certain provisions reveals certain problems of this act, which could significantly impact the effectiveness of this process.

This article is called comparative analysis of grounds for the commencement of Insolvency Proceedings. The problematic issue that was raised is the following one – is it necessary to harmonize grounds for the commencement of insolvency proceedings within the EU? Author outlines and examines two basic grounds for the commencement of insolvency proceedings: cash-flow and balance sheet insolvency tests, their interpretation and application under English, German and Lithuanian laws. Comparative analysis of these laws has showed that each country specifies and understands concepts of cash-flow and balance sheet insolvencies in the different manners, applying different indicators for their determination. Taking into account gained results, it is desirable and advisable to harmonize grounds for the commencement of insolvency proceedings within the EU in order to facilitate economic and investment climates in its Member States.

Copyright of Romanian Case Law Review / Revista Română de Jurisprudenţă is the property of Universul Juridic Publishing House and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The legal framework of insolvency proceedings in the Czech Republic has long been subjected to much criticism from various kinds of stakeholders, including political parties. This policy analysis paper focuses on how this topic resonates at the parliamentary level, specifically on how it was reflected in the Czech Parliament during the adoption process of the last amendment to the insolvency act. The analysis focusing on two critical parameters of the bill is based on a detailed examination of the transcripts of Parliamentary debates, the legislative documents as well as interviews with several members of the Parliament involved in the process and provides an overview of possibilities of future development. [ABSTRACT FROM AUTHOR]

Copyright of Law / Teise is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Law / Teise is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper is focused on the financial situation of companies entering insolvency proceedings. It does not work with all kinds of the insolvent companies, but this paper concentrates on one specific issue. The issue is pre-pack insolvencies. The main aim is to show if the financial situation is an important factor for consent to pre-pack. The pre-pack insolvencies are insolvency cases which start with an insolvency proposal which is accompanied by a reorganization plan already approved by creditors. Prepacks should help make the insolvency process quicker and enable enterprise financial rehabilitation and sustain the going concern principle. On the other hand, the procedure can hardly be successful when the financial situation of the company is extremely poor. Therefore this paper evaluates the financial situation of the companies with pre-packed insolvency in the Czech Republic. The analysis of companies was conducted over one, two or three year periods prior to the companies entering an insolvency proceeding. According to the literature, financial indicators used for evaluation are commonly EBITDA, cash liquidity, debt ratio, ROA and the Altman Z-Score prediction model. Results for the individual enterprises are summed up in this paper using basic descriptive and variable statistics. Conclusions have especially practical implications because they show financial inability of majority pre-packed cases. [ABSTRACT FROM AUTHOR]

This article analyzes the concept of viability and its interpretation in insolvency law in relation to the restructuring of enterprises where creditors provide financial support in order to avoid bankruptcy. The significance of viability in insolvency law is assessed, as this concept is regulated by international legal acts regulating insolvency proceedings, i.e. European Union law. The complex nature of viability and the assessment of the economic situation of the company are analyzed. The author also examines the precise meaning of viability when applying the Law on Insolvency of Enterprises of the Republic of Lithuania, and the objectives and economic justification for the establishment of this concept. The author asserts that viability is an economic category, the assessment of which requires not only legal, but also special economic, financial, and market knowledge. Recent case law on the interpretation and application of the viability condition in the restructuring process is analyzed. Moreover, the author suggests which circumstances may prove the non-viability of the enterprise and when bankruptcy proceedings should be commenced. [ABSTRACT FROM AUTHOR]

In this paper we will present the notion of Center of Main Interests (COMI) of a debtor in the insolvency proceedings at the European Union level in the light of EU Regulation No. 1346 / 29.05.2000 and the EU Regulation No. 848 / 20.05.2015 with constant reference to the European jurisprudence. The concept of center of main interests of a debtor has a particular importance in the cross border bankruptcy cases as its location determines the court which is competent to open the insolvency proceedings. Although at the European level adopting the EU Regulation No. 1346 / 29.05.2000 was considered a legislative progress in bankruptcy proceedings, in the end it had relatively few applications as it was unable to cover large factual aspects. The mentioned regulation was offering a rigid and abstract definition and interpretation of the COMI concept which resulted in important legal application divergences that lead in the end to a legislative reform. This legislative reform was concluded with the adoption of EU Regulation No. 848 / 20.5.2015.

This paper looks at the impact of the new resolution regime, especially the bail-in tools, on balance sheet management and the implications for internal liquidity risk management as well as funding. Minimum Requirement for own funds and Eligible Liabilities (MREL) and total loss-absorbing capacity (TLAC) should be key indicators for total bank management. Due to costintensity, the paper advises optimising the balance sheet structure and the resolution strategy. A prudent funding strategy has to find a balance between the firm-specific funding capacity, continuous market access and limiting costs. The paper also looks at an efficient way to allocate the specific costs within the bank. [ABSTRACT FROM AUTHOR]

Under Romanian law, insolvency shall be initiated at the request of the persons entitled, usually the debtor or the creditor. After checking the fulfilment of the legal conditions, the syndic judge will order the opening of insolvency proceedings as well as the measures to be taken to know precisely the financial situation of the debtor, the causes that led to the situation of insolvency and the way forward, i.e. the general or simplified procedure. The judicial administrator draws up a report based on which the syndic judge shall decide either the continuation of the general procedure in order to observe the chances of recovery of the debtor on the basis of a reorganization plan or the transition to the simplified procedure: the bankruptcy procedure. In the first case - that of the general procedure - a reorganization plan will be applied, leading to the improvement of the debtor's activity and the payment of the debts to its creditors; in the second case, there are some steps that will lead to the liquidation of the debtor's estate to cover the claims of the creditors. Without claiming to analyses the topic extensively, the article aims to underline the most important aspects about entering the insolvency procedure. [ABSTRACT FROM AUTHOR]

This article analyses the role of courts in corporate insolvency proceedings. In the last few decades the case law has established that courts play an active role in such cases in Lithuania. The Law on Corporate Insolvency which was adopted on 13 June 2019 incorporated this case law and establishes that courts shall be active in corporate insolvency proceedings, ensure effectiveness of such cases and protect public interest. The article examines what are the economic and legal reasons which justify the active role of courts in corporate insolvency proceedings and examines the legal regulation of corporate insolvency in foreign states (Germany, France). Also, the authors assess how the active of role of courts in corporate insolvency proceedings is compatible with the fundamental principles of civil proceedings (equality of the parties, adversarial principle). The laws on corporate insolvency proceedings do not address this question. Even courts shall be active in such cases, the main principles of civil proceedings must be applicable. Furthermore, the authors analyse how courts shall ensure effectiveness of corporate insolvency proceedings: collect evidence, control participants of the corporate insolvency proceedings. The authors also consider whether the relevant case law regarding the active role of courts in corporate insolvency proceedings which had been formed until the adoption of the new Law of Corporate Insolvency should be still applicable. [ABSTRACT FROM AUTHOR]