Three Years After: New Amendments to the Bankruptcy Law
New Amendments to the Bankruptcy Law
Following the amendments to the Bankruptcy Law of August 2014, the new amendments of the Bankruptcy Law, applicable as of 25 December 2017, introduce considerable changes to the bankruptcy regulations in Serbia.
An important change related to “undertaking actions of special importance” obliges the bankruptcy administrator, in case of lease of property encumbered by secured/pledge interest, to seek not only the consent of the creditors’ board but also the consent of the secured/pledge creditor who renders it probable that his secured claim may be collected against the property on which secured interest is created.
Another change, also in favour of the secured creditor, affects the structure of the creditors’ board, because this body must now comprise a representative of secured creditors, to be elected by the secured creditors at the initial creditors’ hearing. Secured creditors are thus given the opportunity to take an active part in the decision-making of the creditors’ board, which is important due to the fact that the interests of the bankruptcy creditors often clash with the interests of the secured creditors.
With regard to adopting a decision on bankruptcy liquidation at the initial creditors’ hearing, the percentage of the creditors’ votes required for the liquidation decision has now been reduced to 50% of the total value of all creditors’ claims, as compared to previous 70%.
The Law provides in more details about the authorised experts – appraisers, who must be licensed to perform relevant appraisals in accordance with a special law, and in the absence of such law, this can be done by an appropriate court expert.