Moratorium and priority new financing are basically a source of debt financing for insolvent companies in financial reorganization proceedings. Moratorium prevents creditors from initiating individual enforcement proceedings against a debtor in an insolvency (liquidation or restructuring) proceeding to repay their claims, which allows the value of the debtor's company to be maintained while ensuring equal treatment of creditors. The debtor, who is being restructured, thus more easily devotes itself to financial reorganization as well as to obtaining financing for it. Liquid assets are necessary to repay the debtor's current liabilities, which is a condition for the continuation of operations and successful restructuring. In this context, the concept of priority new financing is extremely important, since it allows creditors who provide fresh funds to the debtor in a formal restructuring procedure a prioritized payment of their claims in the event of a subsequent bankruptcy proceeding over the debtor, according to the rules on the payment of costs.
The master's thesis first introduces the general characteristics of the moratorium and priority new financing in insolvency proceedings, and then discusses the Slovenian regulation of both institutes, including the proposed changes contained in the proposal of »ZFPPIPP-H.« This is followed by a comparative analysis of the moratorium and priority new financing regime in the US, UK, Germany and France, with particular attention devoted to possible legislative changes in response to the increased risk of insolvency due to the COVID-19 epidemic.
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