Insolvency Legislation Faces its First Real Test

The economic crisis presents a real-life test for the Slovenian insolvency legislation, unequalled in its young history. Numerous insolvency proceedings against Slovene companies have revealed several serious flaws of the Insolvency Act and forced the legislator into continuous amendments.

The global economic crisis and its local effects have put the Slovene Insolvency Act (Zakon o finančnem poslovanju, postopkih zaradi insolventnosti in prisilnem prenehanju, Official Gazette of Republic Slovenia no. 126/2007 et seq., ZFPPIPP) and its application in practice to a real test. Although it is a young act, which itself reformed the legal framework of insolvency in Slovenia, the legislator has been forced to amend it three times already, while the fourth amendment is currently in parliamentary.