LEGAL UPDATE: Did you know that there is a new law on bankruptcy that will become valid in the next 3 months? A bankruptcy proceeding can be filed involuntarily against a company by any creditor to whom the company owes a debt of 3 months or more. Employees and the trade union can also file proceedings against the company on the same basis. One of the key changes is that valid contracts can be suspended if the court thinks that its performance can negatively impact the company. The party whose contract is suspended becomes an unsecured creditor and has to get in line with all the other creditors to make claim. Thus, make sure you know the financial status of your counter party to contracts or take valid security against payment obligations.
(Bankruptcy Law, valid 1 January 2015)
