Privatization through bankruptcy

A separate form of privatization made possible under the Bankruptcy Act is purchase of bankrupt companies as legal entities, while the invoked proceedings over the estate of bankruptcy continue. In such cases the new owner acquires a company with debt-free property and no employees, in legal continuity of the company gone bankrupt. We in particular emphasize the fact that ore mining and rights to concession are inherited since they make up the active capital of the business subject sold under bankruptcy proceedings as a legal entity. Following the conclusion of contract, the Office practices instituting all the necessary procedures before the Agency of Business Registers, the Tax Administration, and other state authorities in order to establish legal continuity and fulfil requirements for initiating the subject’s business activities.

During the procedure of bankruptcy special attention is given to the implementation of the procedure and, also, to the protection of all rights of creditors, especially encumbrances of assets and privileged rights. The attention of the Law Office is specially focused on the rights which ensue from the concession rights and entitlements that encumber assets of the large companies.

Privatization through bankruptcy of copper, lead and zinc mine’ ’Veliki Majdan’’.
Privatization through bankruptcy of the company «Sport Star»