New Croatian law sends 19,646 companies into bankruptcy
Xinhua, September 2, 2015 Adjust font size:
A new Croatian law on bankruptcy came into effect on Tuesday, sending 19,646 companies into bankruptcy, local media reported.
Croatian Minister of Justice Orsat Miljenic said that implementing the new law would speed up the bankruptcy procedure and remove companies that generate big insolvency from the market.
The new law stipulates the companies whose assets have been blocked for more than 120 days will be pushed to bankruptcy.
Those companies that did not pay wages to its employees for three months will also risk entering the bankruptcy procedure, according to the new Bankruptcy Act.
The 19,646 companies owe debts of over 19.2 billion Croatian kuna (2.8 billion U.S. dollars), among them 15,001 companies, with no employees at all, have debts totaling around 14.5 billion kuna (2.1 billion dollars), the report said. Endit