Master's thesis called “THE ROLE OF INSOLVENCY LAW DURING THE ECONOMIC CRISIS IN SLOVENIA” stems from the assumption that the corona crisis shall be followed by a phase of systemic insolvency. Therefore, the hitherto limited approach of countries, which primarily solves only liquidity problems of companies, cannot completely prevent the crisis to follow. Additional mechanisms are needed to maintain the stability of the economy in the long run. For these purposes, the thesis presents three alternative procedures through which the solvency of a company can be established: procedures provided for by intervention legislation, judicial procedures for debt restructuring and informal out-of-court restructuring procedures.
Within the framework of intervention legislation, the current anti-crisis measures of some countries and their impact on liquidity or solvency in companies are analysed. At the same time, it is crucial that in the initial phase the state aid is directed into establishing a stable capital structure in the long run (the emphasis is on the aspect of permanent solvency).
Furthermore, the thesis describes the shortcomings of both existing and proposed insolvency legislation, which do not sufficiently address the increased need to restructure a significant part of the economy. Temporary adjustments are needed in order to emphasize the importance of quasi-judicial procedures through which restructuring can be achieved in a relatively quick, cost-effective and easy way.
The last part of the thesis presents the out-of-court settlement procedures which are an important alternative to the standard insolvency proceedings; however, it is first of all necessary to unify the interests of different creditors in order for the procedures to be implemented in practice. There are some possibilities enumerated in the continuation of the theses that encourage participants to agree on certain matters.
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