The master's thesis under the title "SOLVING THE PROBLEM OF OVERINDEBTEDNESS OF MICRO AND SMALL ENTHERPRISES" is based on the assumption that "effective" insolvency legal frame and thus court restructuring proceedings, intended for micro and small companies, which represent the most numerous legal subjects in economy, shall stem from specific needs of insolvent MSE and provide customized solutions. In the moment of perceived financial problems the legislative framework must force a company's management to take immediate actions and encourage an active approach to choose one of the alternative insolvency proceedings, all in order to ensure high protection of creditors and create conditions for maintaining a vital economy.
The existing court procedure for restructuring the debt of insolvent micro companies contains elements causing high risks of possible abuse of the institute, especially by the legally envisaged acting of an insolvent debtor. During the unpredictive times of the »Corona crisis« with its direct impact on the economy, the abundance of "deferred insolvency" of MSE in the economy and additionally the feeling of "dishonesty" of the existing court procedure are the basis for the analysis of the existing procedure and the proposal of the Amendment to the ZFPPIPP-H Act, introducing possible solutions and changes, with the addition of my own criticism and indication of possible solutions presented in this thesis.
As a possible alternative to a court procedure for debt restructuring and thus securing a way out of insolvency, two alternative procedures are presented; out-of-court settlement, by analysing the Banking Sector Guidelines estimated for the conduct of out-of-court dept restructuring of micro and small companies hold by banks as the largest secured creditors in the event of insolvency and on the other hand, a bankruptcy proceeding, as from a vital economy point of view not necessarily negative conclusion of an unprofitable business story.
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