Changes in collateral rights
The draft new bankruptcy act amends the conditions of starting reorganisation at a company under liquidation process. Not all collateral rights holders will have to endorse a reorganisation plan, according to the draft new act. Present bankruptcy act rules guarantee half of liquidation income, minus liquidation costs, for those with collateral rights, provided that these rights had been valid at least already a year before liquidation process was initiated. The draft new act provides collateral rights holders with all liquidation income, minus costs.
