Reflecting to the global economic downturn and its effects on the Czech economy, AmCham has been continuing its efforts to help a smooth implement ation of the new Czech Insol vency Act, pr imarily its section on reorganization.
The Chamber invited three US insolvency experts – two federal judges and one internationally practicing attorney – to visit Prague and teach Czech insolvency judges, trustees and practitioners how to write a good reorganization plan, how to value assets, to understand the dynamics of the negotiation among the various interests groups (a debtor and various groups of creditors) etc.
For the lecturers – Charles Case, Redfield Baum and Thomas Salerno – this was not the first time in Prague. AmCham brought them over to discuss principles of reorganization in insolvency proceedings with Czech drafters of the new insolvency act as early as in 2001. Since that time, they have been in a frequent contact with the drafters and also visited several times to explain the importance of good insolvency law to politicians and, later on, to teach all parties to insolvency proceedings to work with the principles of the new law that came into effect as of January 1, 2008.
The workshops were held between October 5 and 9. They were centered around a case study on a troubled company. The attendees worked in groups to draft reorganization plans. Then the feasibility of the plan was discussed in detail. We would like to thank all co-organizers: US Embassy, Judicial Academy, Chamber of Crisis and Insolvency Trustees (KSKŘI), Chamber of Insolvency Trustees (AIS), Czech Banking Association, and American Center.
Interviews:
Charles Case about the new Czech Insolvency Law
Redfield Baum about the new Czech Insolvency Law
