Insolvency Act and CKD DS Transportation Systems
The successful restructuring of CKD DS Transportation Systems that applied, in the Czech Republic by then unknown, method of a “revitalization bankruptcy” significantly influenced Czech legislators during preparations of the new Insolvency Act. The publication activity of Prof. Mejstrík on the subject of insolvency supported by the rare example of successful restructuring of CKD and subsequent sale to the strategic partner, served as a source of inspiration for new and more efficient insolvency legislation. A possibility of reorganization and revitalization of troubled firms instead of traditional fragmented sale of firm’s assets was implemented in the new Insolvency Act. As a result, the new legislation enables potential sale of the entire insolvent company and significantly increases the value of the firm for creditors.
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Associate Director
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jana.chvalkovska@eeip.cz