CEU Electronic Theses and Dissertations, 2023
| Author | Stanojevic, Jana |
|---|---|
| Title | The Importance Of The "Breathing Spell" In Reorganization |
| Summary | In 2020, the United Kingdom (UK) adopted the Corporate Insolvency and Governance Act (CIGA) to eliminate the long existing deficiencies of bankruptcy/insolvency law in the country. One of the main additions of the Act was the introduction of a standalone moratorium, previously unknown to the UK insolvency system. After many years of resistance to changes of the Insolvency Act 1986, partially pressured by the unprecedentedly large number of insolvency cases caused by the COVID 19 pandemic, it was realized that successful restructuring presumes a ‘stay’ – “breathing spell” for the debtor, or a “time out” from his creditors. The ‘CIGA moratorium’ was modelled after the concept of automatic stay of the bankruptcy law of the United States (US) that has proven to be an important factor in conducting efficient reorganization proceedings. Reorganization proceedings of insolvent, or near insolvent companies materialize the second chance bankruptcy philosophy. Increasing efficiency reorganization/restructuring proceedings has been a top priority in according to the 2019 Directive as well. In the light of that, this thesis will provide an overview of the law and application of automatic stay in the US, the new moratorium brought by the UK CIGA as well as the moratorium rules found in Serbia’s Law on Bankruptcy. The thesis will examine the positive and the negative aspects of the stay- to identify the strengths and weaknesses in each of the covered jurisdiction. Considering that the US model appears to be seen as the leading model in bankruptcy law globally, it’s solutions will be used as the model that UK and Serbia’s legal framework will be compared to. Finally, since Serbia is in the process of accession to the European Union it is taking over acquis communautaire which presumes modernization of insolvency law, amongst other things. In the absence of a recommendation of a particular ‘stay’ model within the European Union, Serbia could look at such leading models as the United States or United Kingdom’s. This is because the two mentioned jurisdictions have the most experience in the domain. |
| Supervisor | Tibor Tajti |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2023/stanojevic_jana.pdf |
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