The operation of the company during restructuring

The operation, production, sale and purchase of a company works without significant restrictions during the restructuring process. The company operates in the same way it did before restructuring, however some actions require the approval of the restructuring administrator. The administrator oversees the debtor's actions during the restructuring, and he/she is obliged to act with professional care so that the value of the debtor's assets does not drop and so that he/she does not thwart the successful completion of the restructuring process. If the debtor seriously or repeatedly breaks the obligations assigned by this act, the administrator will immediately ask the court to declare a bankruptcy.

The legal actions of the debtor can only be approved by the administrator if they valorize the debtor's assets or if they are necessary to achieve the purpose of restructuring. The debtor is obliged to provide all information about the action being approved and all other related actions to the administrator. The legal actions of the debtor are subject to the administrator's approval to the extent determined by court in the court order allowing restructuring. Legal actions of the debtor concerning industrial relations are also subject to the administrator's approval. The extent of the debtor's legal action which are subject to the administrator's approval during restructuring can be extended by the creditors' committee. After the approval of the restructuring plan, a supervisory management can be formed to oversee the debtor, during which the administrator still approves the debtor's actions in accordance with the aim of the restructuring and with the approved restructuring plan. 

The most significant restriction since the beginning of the restructuring process is the ban to carry out all obligations that arose prior to the beginning of restructuring and simultaneously the obligation to properly and timely carry out those that will arise after the beginning of restructuring. The original obligations do not cease to exist, only their application is changed and they need to be properly and timely entered into the restructuring proceedings via an application pursuant to § 121 et seq. of Act No. 7/2005 Coll. on bankruptcy and restructuring as amended.

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Restructuring cases in which JUDr. Ing. Veronika Škodová took the role of the restructuring administrator took place under the jurisdiction of the District Court in Banská Bystrica.

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