Kosovo: New Bankruptcy Law

20-07-2016 – Kosovo: New Bankruptcy law published with the Official Gazette. Kosovo’s New Bankruptcy Law (05/L – 083) was published in the Official Gazette no. 23 dated 07 July 2016 and will enter in force 15 days after its publication i.e. on 22 July 2015. Compared to the previous legislation (Law No. 2003/4 on Liquidation and Reorganization of Legal Persons in Bankruptcy and the Law No. 02/L-115 amending and supplementing the Law No.2003/4 on Liquidation and Reorganization of Legal Persons in Bankruptcy) the new bankruptcy law introduces several novelties: 1. Centralized Jurisdiction. Pursuant to the New Bankruptcy Law The Department of Commercial Matters of the Basic Court of Prishtina shall be the competent Court to proceed with bankruptcy cases (under the previous legislation bankruptcy cases were heard by the District Economic court with jurisdiction in the geographic area in which the debtor’s principal place of business was located). 2. Specific and expedited procedure for Small and Medium Enterprises. The New Bankruptcy Law establishes a new specific and expedited procedure for Small and Medium Enterprises (business organizations that have an annual turnover up to one million (1,000,000.00) Euro or has up to twenty-five (25) employees). 3. The debtor is in possession. Pursuant to the new law the bankrupted debtor shall be in possession of its estate unless he requests the appointment of an administrator or is removed from possession by the Court (under the previous an administrator was automatically appointed by the Court). 4. Regulation of cross border bankruptcy proceedings. Chapter IX of the New Bankruptcy Law provides specific regulation for cases of cross border bankruptcy proceedings which were not addressed under the prior legislation. As with the previous legislation the two envisaged options are Reorganization and Liquidation. For further inquires about the above, please contact Mr. Rudi Metaj at rudi.metaj@tashkopustina.com and/or 0038649780756.