A key issue in the event of the submission of an application under the out-of-court debt settlement mechanism, the conclusion of a restructuring agreement, or the bankruptcy of a legal entity, is the treatment of the liability of persons who are jointly and severally liable. In other words, the question is how chairpersons, managers, managing directors, chief executive officers and other corporate officers remain liable vis-à-vis public creditors following the legal entity’s entry into the above procedures.
The Insolvency Code contains provisions governing the restructuring of debts of natural and legal persons through the out-of-court debt settlement mechanism, the restructuring of businesses through the restructuring procedure, as well as bankruptcy and the discharge of natural persons and corporate officers. Whenever a company enters into any of the above procedures, a pivotal question arises: what is the position of persons who are jointly and severally liable? In other words,
