Insolvency proceedings are conducted for the collective and proportional satisfaction of the creditors of the insolvency debtor by liquidating its assets and distributing the collected funds among the creditors.
Insolvency proceedings can be initiated if the Court determines the existence of insolvency reasons. The reasons for initiating insolvency proceedings include the insolvency of the insolvent debtor, impending insolvency, failure to comply with an adopted reorganization plan, and if the reorganization plan was obtained by fraud or unlawful means.
The insolvent debtor is financially incapable if they are unable to meet their matured and due payment obligations. The fact that the insolvent debtor has settled or can settle in full or in part the claims of some creditors does not mean that they are financially capable. The insolvency debtor is financially incapable if they fail to settle their matured financial obligations continuously for 60 days, or if the debtor’s account is blocked continuously for 60 days. Insolvency proceedings can also be initiated due to imminent insolvency that will occur in the next 12 months. Only the insolvent debtor can file a proposal to initiate insolvency proceedings due to imminent insolvency.
The conclusion of the insolvency proceedings after reporting the insufficiency of the insolvency estate is the most common way to terminate the insolvency proceedings. Upon the finality of the decision to conclude the insolvency proceedings, the insolvency judge orders the removal of the insolvent debtor from the register. In case of discontinuation of the insolvency proceedings, the insolvency judge orders the removal of the registration note.
By opening insolvency proceedings against the insolvent debtor, creditors can submit their claims, attaching all relevant evidence and documentation for the court or insolvency administrator to review for the recognition of the filed claim. The claim includes the business name, registered office, identification number, or name, surname, and address of residence of the creditor, the business name, registered office, identification number of the debtor, the amount of matured and unmatured claims, the legal basis of the claim, and an indication of the existence of an enforceable instrument and evidence of the claim’s existence.
In a case where this office successfully represented the insolvent debtor in insolvency proceedings 65 0 St 926368 21 St, and in connection with the Insolvency Proceedings at the Municipal Court in Sarajevo, case number 65 0 St 926368 21 St, on March 24th, 2023, the court issued a decision opening insolvency proceedings against the insolvent debtor with a note that the said insolvency proceedings are immediately concluded due to the lack of insolvency estate.
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