As at 23 January 2018

By Tomáš Richter
Of Counsel, Clifford Chance Prague LLP, Prague
External Lecturer, The Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague

Proceedings Elements of the Directive already included into the national legislation
  However, reorganization cases may be commenced as "pre-packaged" cases whereby a debtor insolvency petition is accompanied by a pre-approved by the majority of secured and of unsecured creditors. Although not "preventive", such cases, as well as standard reorganization cases, would include a number of features envisaged by the Draft Directive, including:
  • the debtor remaining in possession of the estate and in charge of the process (Art. 5),
  • an automatic stay of individual collection actions upon the filing of the case (Art. 6 and 7),
  • submission of a reorganization plan (Art. 8),
  • adoption of a reorganization plan per classes of creditors and equity holders (Art. 9),
  • confirmation of the reorganization plan by court over the objection of one or more classes (Art. 11 and 12),
  • rules for external valuation of the estate and of collateral (Art. 13),
  • or effects of the plan (Art. 14).
The Act allows broader rights of appeal than would be allowed under Art. 15.
The Act provides an avenue for new, post-commencement financing, however, since such agreements are entered inside full-fledged insolvency proceedings and with the consent of the creditors committee, the Act does not contain rules of the sort proposed in Art. 16 and 17.
The Act as well as the Act on Business Corporations 90/2012 contain rules on directors duties not dissimilar to those proposed in Art. 18, but not exactly the same.