If someone is unable to pay their outstanding and due debts (or is just partly able to do so), that person is considered insolvent. This applies to companies and to natural persons as well. The number of companies that had to cease operations because of insolvency increased in 2023. Although the Hungarian legal environment provides several solutions to this problem, these have different effectiveness and have different consequences for both debtors and creditors. Below is a general overview of the four typical procedures for dealing with insolvency in the current Hungarian law.

In Kosovo, there has been a diverse blooming of local and international companies. In the daily transactions of these companies, financial institutions continue to act as a catalyst that affects industries’ development. However, as opposed to these companies, financial institutions in Kosovo are regulated exclusively by the Law on Banks and the Law on Insurances. One important aspect of these laws is the procedures for the establishment, recovery, and liquidation of financial institutions in Kosovo, where an active role is foreseen for the Central Bank of the Republic of Kosovo (CBK) as a regulatory body in issuing guidelines and also approvals in cases of restructuring and voluntary dissolution of the financial institutions.

Albania underwent a substantial overhaul in its approach to insolvency and restructuring proceedings with the enactment of Law No. 110/2016 “On Bankruptcy” in 2017. This legislative stride replaced a prior law that had been in effect since 2002, often leading to disputes and difficulties in uniform enforcement.

All domestic or foreign creditors can lodge claims in insolvency, but international practice shows a stark disadvantage for foreign creditors despite supposed equality.  This article delves into two key aspects – how foreign creditors are informed and lodge claims – shedding light on their status within Serbia’s legal framework. Key insights stem from major international documents like the UNCITRAL Model Law on Cross-Border Insolvency (MLCBI), EU Regulation 2015/848 on Insolvency Proceedings (Regulation), with Serbian insolvency primarily governed by the Insolvency Act (Act).

On September 23, 2023, the Act on Preventive Restructuring came into force in the Czech Republic. It transposes EU Directive 2019/2023 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132.

Moldova faces significant challenges in terms of insolvency in the future. In exploring the factors influencing this area of law, we examine the current state of affairs, anticipate trends, and look at how legal practitioners are gearing up to meet the expected rise in demand. Let’s break down the key points.

The Ukrainian economy has endured unprecedented shocks resulting from the unprovoked invasion by Russia, which led to the seizure of assets in the occupied territories, massive destruction of or damage to assets throughout Ukraine, closure of a number of markets, disruption of various transport routes, huge losses in trade, flight of capital and human resources, etc.

In a time of economic turmoil, company directors and owners focus on maintaining their businesses as going concerns, ensuring financial stability, and managing relationships with their creditors, contractors, and employees. When necessary, that includes considering strategic debt management options. On the other hand, creditors and contractors concentrate on properly assessing and understanding the risks associated with a dynamically changing commercial environment, evaluating their strategies toward clients, and implementing adequate safeguards and responses to emerging threats.

In Croatia, the legal landscape governing insolvency and restructuring is meticulously outlined in the Insolvency Act (Official Gazette no. 71/15, 104/17,36/22) providing a comprehensive framework for the initiation and execution of pre-insolvency and insolvency proceedings, outlining the ensuing legal consequences, and delineating the respective rights and obligations of debtors and creditors. With the recent amendment to the Insolvency Act introduced in 2022, solutions from the European Union have been adopted to encourage early restructuring of sustainable businesses, maintaining the continuity of company operations, and preventing insolvency. With these new changes, emphasis is being placed on insolvency prevention while also providing a strong framework for the protection of the creditors.

The Romanian High Court has recently settled a long-standing legal debate over the conditions for holding administrators personally liable in cases of improper bookkeeping of an insolvent company. This issue has been a point of contention within the legal system since 1995, creating divergence in jurisprudence that required resolution.

The extended deadline for the implementation of the Directive (EU) 2019/1023 has expired on July 17, 2022. More than a year later, in August 2023, the amendments to the Bulgarian Commercial Act concerning, among other things, insolvency and restructuring rules and procedures were finally published in the Bulgarian State Gazette. Apart from pure alignment with the European legislation, the amendments are aimed at certain long-standing shortcomings of the Bulgarian insolvency and restructuring regime.

For a long time, the Slovak insolvency law landscape was overshadowed by deep structural problems that resulted in a dire outlook for creditors in insolvency and restructuring proceedings.

In The Debrief, our Practice Leaders across CEE share updates on recent and upcoming legislation, consider the impact of recent court decisions, showcase landmark projects, and keep our readers apprised of the latest developments impacting their respective practice areas.

According to the government, the act is designed to tackle certain perceived downsides of excessive tourism, such as the lack of affordable long-term accommodation for the housing needs of the local population, a negative impact on the environment (especially the sea, sea coast, and islands), as well as a negative impact on cultural heritage sites.

The fifth anniversary of the General Data Protection Regulation (GDPR) in Croatia has ushered in an unforeseen and substantial transformation in the sphere of data protection. This notable shift is characterized by a surge in enforcement actions led by the Croatian data privacy watchdog, commonly known as the Personal Data Protection Agency (DPA – in Croatian AZOP). In stark contrast to the relatively quiet initial three years following the enactment of the GDPR (2018-2021) in Croatia, 2023 has become a turning point, witnessing a seismic shift in Croatian data protection enforcement.

Ukrainian civilian infrastructure, particularly its vital components such as energy facilities and seaports, was heavily targeted by Russian missile strikes, causing severe damage. Combined damage to civilian infrastructure and energy industries already exceeds USD 50 billion. Since the beginning of hostilities, 18 airports, at least 344 bridges and overpasses, and over 25,000 kilometers of roads were damaged.

Large energy companies are taking measures to become green in order to meet targets to reduce carbon emissions. The main stakeholders – investors, customers, rating agencies, and regulators – are pushing energy companies to set more environmental, social, and governance goals publicly. For these companies, the “E” in ESG should be the foundation of their strategy.

As Ukraine is fighting off the brutal invasion by the Russian Federation, the Ukrainian M&A market is at its lowest point, at least in terms of the number of deals, since 2000. Still, interesting trends are emerging and there is great hope for a bright future.