Ineffectiveness of security granted by insolvent debtor
Monday, 31 March 2014Interpretation of sec. 241 (5) (a) of the Insolvency Act – ineffectiveness of acts where a debtor grants (additional) security of its debts A decision of Czech Supreme Court file no. 29 ICdo 13/2012 was published recently which significantly refines the interpretation of so-called preferential acts of debtor which the debtor – being in a state of insolvency – makes in a certain period of time before the initiation of insolvency proceedings. This particular decision relates to provision of Sec. 241 (5) (a) of the Insolvency Act under which a security granted by a debtor in exchange for a duly…