AMENDMENT TO ACT ON INSOLVENCY AND RESTRUCTURING

#69Amendment to Act on insolvency and restructuring

As part of the Recovery Plan and communication with the Commission of the European Union, the Slovak Republic has committed to solving certain shortcomings in insolvency proceedings by uniform and digital means.

There is no centralized electronic system, the purpose of which would be the unified management of insolvency processes, namely bankruptcy proceedings including small bankruptcy, restructuring proceedings, debt discharge proceedings, as well as public preventive restructuring as pre-insolvency proceedings (registered), and liquidation and additional liquidation ordered by the court, in which a liquidator was appointed by the court.

Currently, there is only a vague decentralized system that does not adequately address the system's shortcomings, and therefore it is necessary to create a unified centralized system. The result of the efforts of the Slovak Republic should be a register of pre-insolvency, liquidation, and insolvency proceedings, which will serve not only for delivery, but also for the registration and, of course, the publication of all necessary data and events that occur chronologically in individual processes, while its functionality will also ensure the virtualization of some necessary documents in individual processes, e.g. a virtualized list of receivables, a list of creditors, etc., as a result of which the administrative burden will be removed not only for administrators but also for the court and other entities involved in the proceedings.

The proposed legislation aims to reduce the administrative burden, virtualize individual necessary documents, and overall speed up and streamline the procedural framework of pre-insolvency, liquidation, and insolvency proceedings.