Simplified compulsory settlement
BANK ACCOUNTS BLOCKED?
JUDICIAL ENFORCEMENT IN PROGRESS?
LONGER DELAY IN PAYMENT OF SALARIES TO EMPLOYEES?
UNSETTLED TAX LIABILITIES AND DUTIES FOR EMPLOYEES?
INSOLVENT POSITION OF COMPANY!!!???
DO YOU WANT TO REHABILITATE YOUR COMPANY?
DO NOT BE PASIVE IN ELIMINATING OF THE CAUSES FOR ARRISED SITUATION!
DO NOT RISK CRIMINAL AND INDEMNITY LIABILITY OF MANAGEMENT!
The simplified compulsory settlement proceeding is intended for smaller companies and sole proprietors, who have found themselves in an insolvency position. Simplified compulsory settlement proceeding may be conducted over the company which is, according to second paragraph of 55 article of Slovenian Companies act (ZGD-1), classified under micro companies and under sole proprietor, who meets the criteria from first and second paragraph of the 55/2 article of ZGD-1 or the criteria from first and second paragraph of the 55/3 article of ZGD-1. The simplified compulsory settlement proceeding is, as the name suggests, simpler, cheaper and faster in comparison with the compulsory settlement.
The insolvency debtor must file a motion to initiate the simplified compulsory settlement procedure with the competent court, which must be accompanied by:
- a report on the financial situation and operations of the debtor (it must contain financial statements – balance sheet and income statement and cash flow statement of the debtor, lists of creditors and claims of creditors against the debtor, the amount of average monthly costs of the continuing operation of the debtor in the last year)
- a financial restructuring plan,
- debtor’s statement that the report presents a true and fair view of the debtor’s financial situation and operations. The statement must be made in the form of a notarial deed.
Regarding the content of the proposal of the simplified compulsory settlement the most common proposal is to agree to reduce and postpone the maturity of the debtor’s obligations In the case of a capital company, financial restructuring can also be carried out in the form of an increase in share capital with new in-kind contributions, the subject of which is creditors' claims against the debtor, or with new cash contributions.
The simplified compulsory settlement proceeding effects only those claims that are included on the updated list of claims, which the debtor must submit to the court within one month after the commencement of the simplified compulsory settlement proceeding. The debtor is also obliged to attach to the updated list of claims his statement that updated list of claims truly and fairly presents status of creditors’ ordinary claims at the beginning of compulsory settlement proceeding. The statement must be made in the form of a notarial record.
Each creditor whose claim against the debtor is indicated on the updated list of claims has the right to vote on the simplified compulsory settlement. The simplified compulsory settlement shall be deemed to be approved if it is voted for by creditors whose total amount of claims equals at least 6/10 of the base amount vote for its adoption (the basis for calculating the share of creditor's voting rights in voting on acceptance of simplified compulsory settlement is the sum of all ordinary creditors' claims listed in the updated list) and if it is voted for by more than one half of all creditors whose claims are listed in the updated list of claims vote in favour of its adoption.
The results of the voting on the approval of compulsory settlement proceeding should be verified by a notary and a notarial record thereof should be drawn up. The applicant should file a request for confirmation of the simplified compulsory settlement proceeding with the court within four months of the public announcement of the beginning of the proceeding. The court shall issue a decision confirming simplified compulsory settlement proceeding, if the request for the confirmation of simplified compulsory settlement proceeding was submitted within the time limit specified in the previous sentence and if the majority required for approval of simplified compulsory settlement proceeding has been reached.
Do not hesitate with adoption and execution of measures, prescribed and allowed by the relevant legislation for the companies and other business entities that are in troubles or insolvent!
For the preparation of all necessary in connection with the proposal for the introduction of the simplified compulsory settlement proceeding contact as soon as possible professionals for restructuring of business entities – the company SKUPINA VERITAS d.o.o.
© SKUPINA VERITAS d.o.o.
Tyrševa ulica 18 | 2000 Maribor | +386 2 22 08 900 | info@veritas.si