CONSOLIDATED BANKRUPTCY OF RELATED PERSONS

Vladimir Kozar; Marijana Dukić Mijatović

Authors

Vladimir Kozar Faculty of Law for Commerce and Judiciary, The University of Business Academy, Novi Sad
Marijana Dukić Mijatović Faculty of Law for Commerce and Judiciary, The University of Business Academy, Novi Sad

Abstract

Amendment to the Act on Bankruptcy from August 2014 has significantly worsened the procedural position of persons connected with the debtor through the limitation or exclusion of their rights. The introduction of the restrictive regime for related persons was explained by the need to eliminate the causes which enabled abuses and corruption. It is provided that the persons connected to the debtor are paid off in the newly established last – fourth order of payment and cannot be elected to the committee of creditors in order to prevent outvoting of other bankruptcy creditors by the related persons. An important novelty is that persons connected with the debtor (except those who are dealing with provisions and credit loans within their ordinary course of activities) represent a special class of creditors and do not vote on the reorganization plan which disables abuse by the related parties. Changing position of affiliated entities is also reﬂected in the exclusion of the appointment of a bankruptcy trustee or an independent expert who monitors implementation of the reorganization plan. It also facilitates the refutation of legal transactions concluded with related parties.

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