A Slovakian Regional Court rules that the debt write-off under the arrangement with creditors does not constitute State aid (Frucona)

Factual background: The defendant is a company active in production of beverages which was granted a debt write - off based on the concluded “arrangement with creditors” under the Act on Bankruptcy (Act No. 328/1991 Coll. on Bankruptcy and Arrangement with Creditors). “Arrangement with creditors” is a form of collective insolvency procedure according to the Bankruptcy Act based on which creditors are partially satisfied by the debtor and the rest of their claims are written-off. In 2004 the defendant became an indebted company within the meaning of Bankruptcy Act and applied in line with stipulated rules for the arrangement procedure. During this procedure creditors agreed that 35 % of their receivables would be repaid by the defendant and the rest of the debt (65 % - 416.515.990 SKK

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Authors

  • Nedelka Kubáč advokáti (Bratislava)
  • Ružička Csekes (Bratislava)
  • Ružička Csekes (Bratislava)

Quotation

Andrea Orsulova, Erika Csekes, Juraj Čorba, A Slovakian Regional Court rules that the debt write-off under the arrangement with creditors does not constitute State aid (Frucona), 21 April 2008, e-Competitions April 2008, Art. N° 26958

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