The Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act defines the term 'insolvency' as an economic and financial situation of a debtor, which makes him/her long-term/permanently unable to pay his/her debts as they fall due (prolonged illiquidity) or makes him/her unable to pay his/her debts over the long term (long term insolvency).
It shall be deemed that the debtor's securities or other assets are in a state of prolonged illiquidity if the debtor fails to settle one or more of his/her liabilities for more than 2 months after the due date, providing that the total amount of unsettled liabilities exceeds 20 % of the debtor's liabilities showed in his/her annual report for the last financial year before these liabilities mature.
It shall be deemed that the debtor's securities or other assets are in a state of long term insolvency if the value of the debtor's property is lower than the amount of his liabilities.
As, in accordance with the EU policy, the preferential task of the EU is preventing the collapse of companies, the legislation introduces settlement proceedings to prevent bankruptcy by resolving the insolvency of a company through financial restructuring measures and allowing the company to increase its authorised capital by new contributions paid in (conversion of receivables, subscription of new shares etc.
National aid for companies in difficulties is regulated by the Act Governing Rescue and Restructuring Aid for Companies in Difficulty.
This act lays down the purpose and types of national aid, the criteria, procedures and the methods of providing additional financing, which shall be borne by the budget of the Republic of Slovenia, to rescue and restructure a company in difficulties, provided that such company has its registered office in Slovenia.
The Ministry of Finance, in accordance with the Monitoring of State Aid Act, coordinates and monitors the national aid for rescuing companies in difficulties and controls its compliance with legislation.
Companies in difficulties may decide to use a bank loan . If they cannot provide for the appropriate loan guarantee, they may obtain a loan guarantee from the Slovenian Enterprise Fund.
In addition to the business banks there are various financial institutions, which offer their products (grants and reimbursable funds) to finance business operations, investments, exports and development activities of companies:
- SID Bank (Slovenian export and development Bank, d.d.)
- Slovenian Public Fund for Entrepreneurship
- Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI)
- Public Agency for Technological Development of the Republic of Slovenia
- Eco Fund
- Housing Fund
- Regional Development Fund
- Public Agency for Research Activity of the Republic of Slovenia etc.
The ability of legal entities to pay their liabilities (solvency) may be formally checked on the Websites with publicly accessible records (Bank of Slovenia, AJPES etc.).
The Execution of Judgments in Civil Matters and Insurance of Claims Act regulates the procedural rules – used by courts when they enforce the settlement of claims on the basis of a document permitting enforcement and other documents needed for recovery of debts – as well as rules for the insurance of claims.
Access to different sources of finance can help overcome financial difficulties.
When filing for bankruptcy is the only option left for a business owner, it pays to cut your losses, initiate proceedings sooner rather than later, and move on to a new project.
Kapitalska družba, d. d. (KAD) is a company with share capital (PLC) which founded a special company for corporate restructuring called Posebna družba za prestrukturiranje d.d. for effective business procedures and financial restructuring of companies.
This instruction describes the performance of payment transactions between banks.
An application for writing off or depreciating assets, deferred payment or payment by instalment of taxes may be submitted by a natural person, as well as an individual private entrepreneur and an individual, carrying out his business activity independently, but only for taxes relating to the performance of that activity.
The annual report will also include a Report on financial restructuring measures , and it must be submitted to the Agency of the Republic of Slovenia for public and legal records and services (AJPES) within 3 months after the end of the financial year.
Notice of Termination
In accordance with the Employment Relationships Act the employer may decide to make a larger number of workers redundant. For this purpose he must draft a programme to relieve the redundant workers, and before doing so he must consult the trade union and then inform the Employment Service. Once the employer's request has been granted, he may terminate the employment contract 30 days after fulfilment of the request.
If the company declares bankruptcy or liquidation proceedings, a bankruptcy panel or liquidator may terminate the employment contracts by serving a 15-day notice.
Information on a company’s credit references (business information) may be purchased from various providers and among them the most important are the Bisnode company which offers information about 40,000 companies, banks, insurance companies and pension funds, and 55,000 private entrepreneurs in Slovenia, and the Agency for corporate credit references, Bonitetna hiša I, which is in partnership with the biggest Agency for corporate credit references (business information), Dun & Bradstreet.
Services may also be purchased from them and they include: comparative financial analysis, business analysis, forecasts in the context of business reports, balance sheets and interim reports.
The State Institutions owning the most of basic data on companies in Slovenia are:
Consultation on tax matters is available in the Tax Bulletin on the Website Tax Administration.
If you are s small or medium enterprise in difficulties you can contact the Chamber of Crafts and Small Businesses which offers information about possible help through contract notices for granting financial incentives from the EU.