Creditors’ compulsory settlement is a type of legal proceeding that is held in court against insolvent debtor and is examined in first part of master thesiss. The purpose of credtitors’ compulsory settlement is to allow partial remission of debt based on a majority resolution of the creditors with the goal of reconstruction of the debtor’s undertaking.
State aids are generally prohibited by Article 107, paragraph 1 of TFEU. Nonetheless some state aids are still premmittable under certain conditions. If a company in trouble receives state aid, European Comission has to be notified. Master thesiss examines the restructuring aid and aid for privatisation. Normally privatisation process follows the restructuring process. Process of restructuring is executed with the purpose of maximazing the price for which the company will be sold in the process of privatisation.
The credtitors’ compulsory settlement proceeding was held against debtor Cimos d.d. from year 2014 to year 2015. In year 2013 Cimos d.d. received a state aid in amount of 97 mio euros. European Comission approved restructuring aid. The main creditors and Republic of Slovenia agreed to restructure Cimos’ debt through a debt-for-equity conversion. Currently the company is in the process of being sold, but the process is made difficult due to limitations that steam from state aid. The Market Economy Vendor principle has to be satisfied which means that the company must not be sold for lesser amount than the company's assest liqudation value.