Daniel Futej Daniel Grigel An amendment to the Slovak Insolvency Code came into effect on January 1 2012 though important provisions newly regulating the responsibility of statutory bodies and other persons will not become effective until January 1 2013. The key legislative changes concern the test of over-indebtedness and the liability of the directors of insolvent companies There are two insolvency tests: financial liquidity test (the ability of the company to comply with its due debts) and test of over-indebtedness (the ratio of the company's total assets to its total debts – until the amendment it related to overdue debts). The over-indebtedness test will be assessed taking into consideration the debtor's future (expected) economic results. Subordinated and similar debts will be excluded from calculation of a debtor's financial situation. In both instances, for a company to become insolvent it is required to prove that it has more than one creditor – in the case of the financial liquidity test, with more than 30 days overdue debts.
October 30 2012