REORGANIZATION AND FINANCIAL RESTRUCTURING OF COMPANIES - CASE OF CROATIA AND NORTH MACEDONIA

Abstract

The reorganization of the companies, as a worldwide accepted concept of avoiding liquidation, is perceived as very complex issue, both in academic environmental and the circle of practitioners and government bodies.

The complexity of this issue primarily derives from its multidisciplinary and multifunctional influence, in a broader social context. Nowadays, the reorganization is perceived as the most suitable model to increase cross-border investments, to reduce the percentage of unemployed persons and to cut the risk of loans in banking sector.

For this purpose, in the last ten years, numerous and diverse changes have occurred in the field of insolvency law, particularly in the EU. Most of these changes are related to the promotion of the concept of preventive financial restructuring, as a new concept for avoiding insolvency.

The Republic of Croatia (hereinafter RC) and the Republic of North Macedonia (hereinafter RNM), are not exceptions with regards to this trend. Under the influence of EU insolvency policy, the RC and other countries in the region, including the RNM made certain changes in their laws.

In this article, the main research is the concept of “reorganization” as an established model of avoiding liquidation of debtors and “financial restructuring of debts”. The focus will be on Croatian and Macedonian law and practice.