Decision on recognising foreign insolvency proceedings

The profession is occasionally practiced cross-border in the following cases:

• for legal assistance for which a foreign court or a foreign administrator requests in the Republic of Slovenia regarding foreign insolvency proceedings;
• for legal assistance for which a court or an administrator applies in a foreign country regarding domestic insolvency proceedings;
• if domestic and foreign insolvency proceedings are conducted against a debtor at the same time, and
• if creditors propose to initiate domestic insolvency proceedings or participate in them.

A foreign administrator is a person or authority authorised to do the following in foreign insolvency proceedings:

1) manage or supervisethe financial restructuring or the capitalising of the assets or operations of the debtor, or

2) act as a representative in foreign insolvency proceedings.

A foreign administrator in domestic insolvency proceedings may directly file each application and undertake other tasks in the proceedings for the account of a foreign debtor’s assets or foreign insolvency proceedings – entitlement of a foreign administrator to direct access to the national court.

A foreign administrator may propose the initiation of domestic insolvency proceedings if the general conditions to do so are met, and the general rules on insolvency proceedings if the conditions for compulsory settlement or bankruptcy proceedings are met.

A request to recognise foreign judicial insolvency proceedings may be filed by a person who is appointed the administrator of the proceedings.

The court issues a decision with which it recognises foreign insolvency proceedings, a decision recognising foreign insolvency proceedings:

• if the request includes documents

• whether the proceedings, which are the subject of the recognition request, have the characteristics of foreign judicial insolvency proceedings,

• whether the foreign administrator holds the position of a foreign administrator,

• if the centre of the realisation of the debtor's main interests or place of business is in a foreign country in which the proceedings which are the subject of the recognition request are conducted.

A decision recognising foreign insolvency proceedings must be published by the court on the website for insolvency publications.

By recognising foreign insolvency proceedings, a foreign administrator acquires the standing in the Republic of Slovenia to contest the legal actions of the insolvent debtor.

By recognising foreign insolvency proceedings, a foreign administrator acquires the standing to intervene in any proceedings in the Republic of Slovenia in which the insolvent debtor is the client.

Cooperation of a national court with foreign courts and foreign administrators:

a national court must cooperate with foreign courts and foreign administrators as much as possible, directly or via a domestic administrator. In such cooperation, a national court is entitled to:

• directly exchange information with a foreign court or a foreign administrator;

• request information or legal assistance directly from a foreign court or a foreign administrator, and

• provide information or provide legal aid on the basis of a direct request from a foreign court or a foreign administrator.

Cooperation of a domestic administrator with foreign courts and foreign administrators:

a domestic administrator, in compliance with their competences and under the supervision of a national court, must cooperate with foreign courts and foreign administrators as much as possible. In such cooperation, a domestic administrator is entitled to exchange information directly with a foreign court or foreign administrator under the supervision of a national court.