At the sitting held on 6 December 2017, the members of the Committee on the Economy, Regional Development, Trade, Tourism and Energy considered the Bill amending and modifying the Law on Bankruptcy, submitted by the Government, in principle.
Milun Trivunac, State Secretary at the Ministry of Economy, presented the Bill saying that the amendments consider the payment of creditors, reduction of expenses and the time needed for bankruptcy proceedings. The amendments focus on improving the legal standing of creditors in reorganization and bankruptcy proceedings, as well as the rules for and speed of the proceedings. Also, creditors who have mortgages or other collateral rights on the property of the debtor involved in bankruptcy proceedings gain the right to have a representative in the Board of Creditors, previously reserved only for uninsured creditors, which will enable them to take part in the proceedings.
Trivunac added that certain actions in the proceedings can only be taken with the consent of the creditor such as leasing mortgaged property or its sale without a public call which was so far the discretional right of the liquidator. The rule on how the property is to be assessed by a licenced assessor was regulated in a way that contributes to the creditors’ security and speeds up the sale of the property based on market estimate. The ban on enforcement of a bankruptcy debtor’s property under mortgage was rescinded and the creditor has the right to sell it according to rules for the sale of mortgaged property. If the creditor fails to sell the property within six months it is returned to the liquidator to be sold via bankruptcy proceedings, said the State Secretary.
The bankruptcy proceedings are sped up while the reorganization deadlines are reduced and the procedure is regulated in more detail. The new rules facilitate the financing of bankruptcy debtors which prevents foreclosure and saves both the production and employees. The amendments and modifications to the Law on Bankruptcy reduce the number of non-negotiable loans, and both the World Bank and IMF believe the law can now provide better support for creditors and de-block the banking sector, said Trivunac.
Following a debate the Committee members adopted the Bill amending and modifying the Law on Bankruptcy, in principle, by majority vote.
The Chairperson went on to inform the Committee that members Dr Aleksandra Tomic and Prof. Dr Vladimir Marinkovic are unable to attend the Energy Community Parliamentary Plenum meeting on 19 December in Vienna, so she suggested that that the Committee on the Economy, Regional Development, Trade, Tourism and Energy be represented by Snezana R. Petrovic.
The sitting was chaired by Committee Chairperson Snezana B. Petrovic and attended by the following Committee members and deputy members: Dr Dragomir Karic, Studenka Kovacevic, Jelena Mijatovic, Snezana R. Petrovic, Zoran Bojanic, Ivan Manojlovic, Branislav Mihajlovic, Prof. Dr Vladimir Marinkovic, Ana Carapic, Veroljub Stevanovic, Prof. Dr Miladin Sevarlic and Slavisa Ristic.