Insolvency Law at Slovenia
Slovenia's insolvency framework is governed by the Financial Operations, Insolvency Proceedings, and Compulsory Dissolution Act (ZFPPIPP). In November 2023, Slovenia enacted Amendment H to this Act, aligning with EU Directive 2019/1023 on preventive restructuring and insolvency. The reforms introduce new procedures and obligations to enhance creditor protection and streamline insolvency processes. (The amendment to the Financial Operations and Insolvency Proceedings Act (ZFPPIPP) introduces the concept of imminent insolvency. - TPA Slovenia, Navigating Through The New Additions To The Slovenian Insolvency Framework - Insolvency/Bankruptcy - Slovenia)
⚖️ Key Insolvency Procedures in Slovenia
1. Preventive Restructuring Procedures
These procedures aim to address financial distress before insolvency occurs:
Judicial Restructuring Procedure: Introduced in 2023, this court-supervised process allows companies to restructure their debts to prevent imminent insolvency. It will become available to debtors from 1 January 2025 onwards. (Insolvency 2023 - Slovenia | Global Practice Guides | Chambers and Partners)
Precautionary Financial Restructuring: A non-public procedure requiring creditor consent, enabling companies to reorganize their finances under court supervision.
2. Insolvency Proceedings
These proceedings are initiated when a debtor is insolvent:
Bankruptcy Proceedings: Applicable to legal entities, individuals, and estates, involving asset liquidation to satisfy creditor claims. (Insolvency 2023 - Slovenia | Global Practice Guides | Chambers and Partners)
Compulsory Settlement: A court-supervised process allowing debtors to propose a settlement plan to creditors.
📅 Recent Amendments (Amendment H)
Effective from 1 November 2023, Amendment H introduced significant changes: (Navigating Through The New Additions To The Slovenian Insolvency Framework - Insolvency/Bankruptcy - Slovenia)
Introduction of 'Threatening Insolvency': This concept applies when a company is at risk of not fulfilling its financial obligations within a year, prompting earlier intervention. (Slovenia: Amendment to the Insolvency Act Brings Additional Duties to the Management and Supervisory Bodies)
Management Obligations: Companies must now monitor their financial situation continuously and act promptly if insolvency is imminent. (Restructuring and insolvency law in Slovenia | CMS Expert Guides)
Extension of Contestation Period: Legal acts of the debtor can be challenged beyond the previous periods if it can be proven that the debtor was insolvent at the time of the transaction or that it caused insolvency. (Slovenia: Amendment to the Insolvency Act Brings Additional Duties to the Management and Supervisory Bodies)
🧾 Initiating Insolvency Procedures
Insolvency proceedings can be initiated by:
Debtors: Voluntarily filing for bankruptcy or restructuring.
Creditors: Filing a petition if the debtor is unable to pay debts.
Public Authorities: In cases involving public funds or interests. (New Act No. 111/2022 Coll. on the resolution of imminent bankruptcy | LEXANTE)
Procedures are initiated through the court system, with oversight by insolvency administrators.
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