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Bankruptcy proceedings are governed by the Bankruptcy Act, while reorganisation proceedings are governed by the Pre-bankruptcy Settlement Agreement Act. In both cases, bankruptcy and reorganisation, a company must be insolvent to seek relief from creditors. In principle, Croatian legislation is familiar with three insolvency tests: (i) illiquidity; (ii) incapacity to pay; and (iii) over-indebtedness.

A haircut without the explicit consent of a creditor is only possible during insolvency proceedings.

The Cyprus Companies Law is based on the UK Companies Act 1948. It provides four main procedures for dealing with financially troubled companies. In increasing order of formality and finality they are:

A company may seek relief from its creditors, either by filing for bankruptcy (and for the grant of protective measures until the issuance of the decision declaring bankruptcy), in case of either current or threatened cessation of payments, or by pursuing one of the two pre-bankruptcy procedures provided for by the Greek Insolvency Code (GIC): rehabilitation or special liquidation. In order to file for rehabilitation, a company must be in a situation of current or threatened general inability to perform its due monetary obligations, while to file for special liquidation, current or threatened cessation of payments is a prerequisite.

Grant Spencer, deputy governor of the Reserve Bank of New Zealand, explains why the Open Bank Resolution might be a model for other jurisdictions considering resolution plans

Karen Kemp of the Hong Kong Monetary Authority discusses Hong Kong’s January consultation on establishing a resolution regime for financial institutions in the special administrative region

The European Central Bank and member state regulators have clarified the composition and role of the joint supervisory teams that will supervise the biggest eurozone banks under the incoming single supervisory mechanism

Controversy surrounding the surge in covenant lite across the US and Europe has overshadowed some less cyclical trends that are shifting lending practices

The Austrian Insolvency Code provides for bankruptcy proceedings, which lead to the winding-up and liquidation of a debtor company and restructuring proceedings, which seek to rescue a debtor company. Restructuring proceedings may be initiated with self-administration or without self-administration. Only restructuring proceedings under the Insolvency Code may lead to the relief from creditors.