Liquidation Proceedings In Hungary

In this article, we provide a brief overview of the most important features of a Hungarian liquidation proceeding. We address the issue of the grounds on which liquidation of a company may take place, as well as the ranking of creditor claims during liquidation. Finally, we briefly address the issue of bail as collateral.

Liquidation Proceeding

Under Hungarian law, the liquidation of a company aims at the dissolution of an insolvent company with no legal successor. Act no XLIX of 1991 on Bankruptcy and Liquidation Proceedings (the "Bankruptcy Act") explicitly provides for the circumstances that may serve as grounds for liquidation.