Act on changes and amendments to Bankruptcy Act were published in The Official Gazette of The Republic of Serbia no. 95/2018.
New Paragraph 2 was amended to Article 10 of The Bankruptcy Act (“Official Gazette of Serbia”, no. 104/09, 99/11-etc, 71/12 – US, 83/14, 113/17 and 44/18), after Paragraph 1, and it provides the following:
· All creditors retain the right to require and gain from Bankruptcy Trustee in good time all the information regarding the bankruptcy debtor, the course of bankruptcy proceeding and the property and management of bankruptcy debtor’s property.
New Paragraph 3 was amended to Article 20, after Paragraph 2, and it provides the following:
· In exception to Paragraph 2. of this Article, during the election of Bankruptcy Trustee, bankruptcy judge considers creditor’s motion for appointment of Bankruptcy Trustee, if the bankruptcy proceeding was initiated by creditor’s motion and if it contains the motion for appointment of Bankruptcy Trustee, in accordance with Article 56. Paragraph 3 of this Act.
Article 32 Paragraph 3 was changed and it now provides the following:
· After conclusion of investigation hearing, according to board of creditor’s motion for release and appointment of new Bankruptcy Trustee at the same time, which at least three quarters of board members voted in favor of, and in accordance with the previously gained consent from creditor’s committee, bankruptcy judge resolves the Bankruptcy Trustee, even when the resolving reasons from Paragraph 1. of this Article do not exist, and appoints the suggested Bankruptcy Trustee with the same decision, except when the organization which is determined to provide services of the Bankruptcy Trustee by special act is appointed for Bankruptcy Trustee.
New Paragraph 5 Was amended to Article 35, after Paragraph 4, and it provides the following
· On the first meeting of creditor’s committee, the creditors whose claims are likely to value more than 50% of all the creditor’s claims give consent for election of appointed Bankruptcy Trustee, and if there is no consent, they suggest release of appointed Bankruptcy Trustee and appointment of new one at the same time. Bankruptcy judge resolves appointed Bankruptcy Trustee and with the same decision appoints the suggested Bankruptcy Trustee from the list of active Bankruptcy Trustees for the area of competent court, except when the organization which is determined to provide services of the Bankruptcy Trustee by special act is appointed for Bankruptcy Trustee.
Paragraph 3 was amended to Article 56, after Paragraph 2, and it provides the following:
· If the bankruptcy proceeding is initiated by creditor’s motion, motion to initiate the bankruptcy proceeding may contain motion for appointment of Bankruptcy Trustee from the list of active Bankruptcy Trustees for the area of competent court as well (name and surname of the suggested Bankruptcy Trustee and license number).
Article 59 Paragraph 2 changes and it now provides the following:
· The amount of down payment shall be determined in accordance with type of legal entity as micro, small, medium or large legal entity, in accordance with the provisions by which the criteria for sorting the legal entities is determined , and it cannot be more than:
1. 50.000 rsd for micro legal entities
2. 200.000 rsd for small legal entities
3. 600.000 rsd for medium legal entities
· 1.000.000 rsd for large legal entities
Article 161 Paragraph 1 changes and it now provides the following:
· Reorganization plan can be submitted by the Bankruptcy Trustee, secured creditors, bankruptcy creditors, as well as persons who are entitled to at least 30% of capital of bankruptcy debtor, if the Decision on bankruptcy was not brought on the first creditor’s hearing.
This Act was brought into force on December 9th 2018.
NOTE: Due to the volume of legal changes, the changes stated before are not all changes, but the ones which are of high importance.
If you have any questions or need further information please contact Ivan Ljubisavljević, Živković Samardžić Associate (ivan.ljubisavljevic@zslaw.rs) or any of your regular contacts at Živković Samardžić.