Clifford Chance
How safe is the avoidance safe harbour in Czech insolvency law?
30 September 2014
In a recent case, the Czech Supreme Court had the first opportunity to define the contours of the "contemporaneous exchange of adequate value" safe harbour applicable in avoidance cases under the Insolvency Act 182/2006.
The court drew the boundaries very narrowly. In conjunction with earlier case law on disqualification of lenders from participation in creditor committees, the judgment means that creditors of Czech debtors in financial difficulties should think long and hard before they decide to take new security and not to extend new loans at the same time.
Download PDF
