Linić: The Judge’s Decision is Irresponsible and Harmful to the Entire System

Finance Minister Slavko Linić today sharply criticized Judge Mislav Kolakušić, who dared to question Linić’s law on pre-bankruptcy settlements.

The judge’s decision to postpone the hearing on the pre-bankruptcy settlement of Dalekovod and to submit a request for a review of the constitutionality of the Financial Operations Act is considered by Linić to be irresponsible, harmful to the entire system, and driven by the personal interests of the judge. At a press conference, he aggressively targeted the judge, believing that by questioning the controversial law, he was actually accusing the parliament and the executive branch of engaging in criminal activities.
– Where does he get the right to speak about the abuse of executive power? The judge thinks he is divinely appointed and can lead bankruptcy proceedings for 15 years, creating enormous costs to the detriment of citizens. This decision will have far-reaching consequences for Dalekovod and its 1,900 employees. But that judge is not interested in jobs; he is interested in other stories – said Linić, emphasizing that the judge did not explain exactly what he saw as unconstitutional in the pre-bankruptcy settlement law. He will also have to explain this to his colleagues because, as Linić claims, it is not the judge but the court that can initiate constitutional proceedings. 

In defense of Judge Kolakušić, the Association of Croatian Judges has stepped in, reacting to Linić’s initial statements following yesterday’s news about the judge’s decision, which immediately stirred up a great deal of controversy. However, Linić responds that there are no sacred cows among judges either.
Criticism of the pre-bankruptcy law due to its vagueness has been heard from judicial circles before, which Judge Kolakušić also pointed out in his statement, saying that he believes the law allows certain groups of creditors more favorable conditions for collecting their claims. 

The minister, however, believes that the judge’s statement is an isolated incident and that the entire Commercial Court does not stand behind Judge Kolakušić. With this statement, he also shifted the ball to the judiciary, saying that the future of struggling companies seeking salvation from bankruptcy through pre-bankruptcy settlements now depends on their decision. At the press conference, figures were presented that the minister used to try to prove the effectiveness of his law. Instead of lengthy bankruptcy processes, some of which last more than ten years, the new law has enabled creditor agreements within a few months and the continuation of business for a large number of companies. So far, 4,692 requests for pre-bankruptcy settlements with restructuring plans have been received. Of these, 650 proposals have been accepted, while 2,863 cases have been dismissed or suspended.
– This shows that the executive branch is not overly lenient, as a huge number of plans have not been accepted – emphasizes Linić, adding that the law is feasible primarily due to the goodwill of creditors to reach an agreement, and many thought that this would be the main stumbling block and reason for the law’s unfeasibility when it was passed last year.