Reorganization and the modes of insolvency solutions

Act 182/2006 Coll., the Insolvency Act, brought many changes to the field of law of insolvency. Before all, it is the new conception of the system of unified administration, where the decisions are taken about the status of liquidation procedure, so that the most efficient method of resolving of such insolvency may be found followingly, and also new ways of insolvency resolving, namely reorganization and debt clearing. Preparation of the Act, similarly to many neighbour countries, was strongly affected by the aim at forming a set of conditions motivating debtors to try and resolve their difficult financial situation and avoid reluctance in case of economic crises by presenting legal tools enabling to keep the business running. That was supposed to bring an improvement of the situation of both the debtors and their creditors, who all play their set roles within the insolvency proceedings. The key factors were hence speed, efficiency, and the wish to balance the effects of liquidation and sanation form of insolvency resolution. This Master's degree dissertation is focused on the sanation form of insolvency procedings. The Act defines this form as a reorganization; a method replacing the quite rarely used institute of debtor-creditor clearing, and directly aims at balancing the long-observed disbalance between..