Slovenia modified its Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act through amendments adopted by the National Assembly on March 31, 2016, effective April 26, 2016.

Key Changes

The revisions introduced several important modifications to insolvency procedures:

Expanded Access to Preventive Restructuring

Small companies may now rely on proceedings on preventive restructuring, in addition to medium-sized and large companies as was previously permitted.

Streamlined Decision Publishing

Financial restructuring approvals must now be published during preventive proceedings, reducing delays in creditor notification and accelerating agreement implementation timelines.

Simplified Compulsory Settlement Restrictions

This process is now limited to micro companies and entrepreneurs only.

Enhanced Personal Bankruptcy Protections

Extensive amendments target debtor fraud prevention and proceedings misuse, including extending the challenge period for legal acts benefiting closely related persons from three to five years. Additional creditor protections and new liability limitation rules were introduced.

Context

These represent the seventh substantial amendment to Slovenia’s Insolvency Act since its introduction less than eight years prior, reflecting ongoing efforts to improve efficiency in addressing over-indebtedness while preventing bankruptcy process abuse.