Restructuring and insolvency—Croatia—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Croatia—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Croatia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Croatia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Schoenherr—Vice Mandaric; Miriam Simsa

1. What main legislation is applicable to insolvencies and reorganisations?

The Bankruptcy Act contains provisions on bankruptcy and pre-bankruptcy proceedings for legal entities. For consumers, the Consumer Bankruptcy Act is applicable.

There are also specific provisions for companies active in the financial sector in the Credit Institution Act, the Insurance Act, the Act on Resolution of Credit Institutions and Investment Companies and the Act on Financial Operations and Pre-Bankruptcy Settlement.

In addition, since 2017, the Act on Extraordinary Administration Proceedings for Companies of Systemic Importance for the Republic of Croatia contains a special restructuring regime for joint stock companies that employ (together with their subsidiaries) more than 5,000 people and have approximately €1 billion of debt (the only proceeding under this Act so far has been the proceedings with respect to the Agrokor group).

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

The Republic of Croatia, funds financed by the Republic of Croatia (eg, the Croatian Health Insurance Fund and the Croatian Pension Insurance Fund) and units of local and regional self-government

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