Professional literature usually defines compulsory settlement proceeding as a court proceeding in which creditors voluntarily reduce or defer payments of their obligations from the insolvent debtor by a majority decision. In practice, compulsory settlement proceedings represent the last possibility for an insolvent debtor to continue business, based on an agreement with the creditors, and to repay at least part of its obligations.
The master's thesis deals with the compulsory settlement procedure conducted over T - 2 company for the creation, development and marketing of electronic communications and equipment Ltd (T - 2 Ltd). At the same time, the thesis analyzes in detail the relevant court decisions issued in the bankruptcy proceeding, which was also held against the company.
The first part of the paper presents the legal framework of the compulsory settlement procedure, followed by the presentation of the compulsory settlement procedure over T - 2 Ltd. The legal analysis section analyzes the court rulings issued in the bankruptcy proceeding, with focus given on detailing the position of creditors with the right to separate settlement. At the same time, company's operations before and after the commencement of the compulsory settlement procedure are presented in the economic analysis section. On this basis, an assessment of the ability to obtain creditors' repayment under the terms of a compulsory settlement is also given. The last part of the paper introduces the ZFPPIPP-F amendment, which restored and altered the position of secured creditors in the compulsory settlement process.
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