HUP concerned about the Commercial Court’s decision

The Croatian Employers’ Association today issued a statement expressing concern regarding the legal entanglement caused by the decision to halt the ruling of the Commercial Court in the pre-bankruptcy settlement process of the company Dalekovod and the announcement of filing a request for the assessment of the constitutionality of parts of the Law on Financial Operations and Pre-Bankruptcy Settlements.

“The fact that the question of the constitutionality of the law enacted in October last year is now being raised, based on which numerous pre-bankruptcy settlement processes have been initiated and conducted, undermines the already fragile legal certainty in Croatia. The mere halting of the process raises numerous uncertainties regarding further actions in initiated cases, the outcomes of which depend on the fate of a large number of companies and their employees. The possibility that the Law under which some decisions have already been made and under which numerous processes are being conducted is not in accordance with the Constitution creates a dangerous legal vacuum that can have serious negative consequences, not only for the economy but for society as a whole,” states the HUP statement.

HUP therefore appeals for the need to involve all relevant stakeholders in the legislative process who can contribute to the creation of quality and enforceable final legal solutions. This, they say, is particularly crucial in enacting such extensive, complicated, and important solutions as the Law on Financial Operations and Pre-Bankruptcy Settlements.

“Along with social partners, the legislator should consult the broadest expert team that can view the legal solution through all aspects of its impact. This would avoid the enactment of legal solutions that raise doubts about their compliance with all existing regulations as well as their enforceability in practice. The foundation of legal order security in any organized state is the existence of sustainable and enforceable laws, as well as the efficiency, accountability, and compliance of the judiciary’s actions,” it is asserted in the statement.

The HUP Institute for Pre-Bankruptcy Settlements considers it a good solution that has shown it can accelerate the restructuring of the domestic economy and thus create conditions for the recovery of endangered companies and the preservation of jobs. Therefore, it appeals to the Government to immediately seek alternative solutions that will allow the continuation of these processes in the event of a serious threat to the implementation of pre-bankruptcy settlements according to the existing model.