Bankruptcy and liquidation
Deposit Insurance Agency carries out the function of bankruptcy and liquidation administrator of banks, insurance companies and other financial organizations, pursuant to the Law on Bankruptcy and Liquidation of Banks and Insurance Companies. Subject to the fact when the bankruptcy and liquidation proceedings were initiated, these proceedings are conducted in accordance with provisions of the following laws:
- Law on Rehabilitation, Bankruptcy and Liquidation of Banks,
- Law on Forced Settlement, Bankruptcy and Liquidation,
- Law on Bankruptcy Proceedings,
- Law on Bankruptcy and Liquidation of Banks and Insurance Companies.
Bankruptcy and liquidation proceedings are conducted by relevant commercial courts.
Within the powers of the bankruptcy or liquidation administrators, the Agency performs the following activities:
· organizes inventory-taking of assets and liabilities of the bankruptcy or liquidation debtor and prepares the initial bankruptcy or liquidation balance sheet;
· monitors the implementation of the procedures of cashing of bankruptcy or liquidation debtor’s assets in accordance with the decisions of the bankruptcy or liquidation panel;
· examines the claims reported by creditors and provides opinion at hearings on justifiability and amount of claims;
· proposes to the court a drafted division of assets for the purpose of paying out the creditors according to the orders of priority as set forth by the law;
· represents bankruptcy or liquidation debtors before the courts and other competent bodies, and undertakes legal actions for the purpose of successful conducting and completing the ongoing lawsuits.
The basic task in conducting bankruptcy and liquidation proceedings is the cashing of bankruptcy or liquidation debtor’s assets, and settlement of creditors’ claims from the generated proceeds. The sale of property of a bankruptcy or liquidation debtor is carried out by public bidding or public tender, upon the previously made appraisal by authorized experts.
In bankruptcy proceedings, creditors are paid partially, in percentages, in accordance with the legally prescribed pay-out orders.
Liquidation proceedings involve full payment to all creditors whose claims have been found grounded. After the payment of all creditors of a liquidation debtor, the surplus of liquidation estate is transferred to shareholders. If in conducting the liquidation proceedings it is found that the overall property of a liquidation debtor is not sufficient for settlement of all creditors, Deposit Insurance Agency Agency in the capacity of liquidation administrator may propose to the National Bank of Serbia to issue a ruling on institution of bankruptcy proceedings.
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