PRO-CREDITOR Liquidation and Asset Controller Ltd is one of the leading and most acknowledged companies of the Hungarian Insolvency profession, which specialises in conducting bankruptcy proceedings, liquidation proceedings, and final settlement proceedings as well as providing reorganizational counselling.
PRO-CREDITOR Ltd has been a member of the Hungarian Association of Insolvency Practitioners and Asset Controllers since its foundation.
Our company possesses an ISO 9001 certification.
Pursuant to paragraph 63/B. § (1) of the Bankruptcy Law, our company informs the creditors as follows:
We inform you that in respect of companies under liquidation especially marked in the list of liquidations in progress, the debtor’s assets are not sufficient to cover the expected liquidation costs, or due to missing records and deficiencies of bookkeeping, it is technically impossible to conduct the liquidation proceedings according to the general rules.
In line with the above, the liquidator thereby informs the creditors that it would like to file a petition to the competent Court of Justice for a simplified liquidation in respect of the proceedings marked in the list.
If anybody happens to know about any assets of the debtor which are to be found anywhere (including moveable and immoveable assets, liabilities or intangible assets) or might be able to provide help in the implementation of the procedure according to ordinary rules, then we request that they should report that to the liquidator in 15 days.
The bank account number of Pro-Creditor Ltd for the payment of the registration fee in bankruptcy proceedings:
CIB Bank Zrt, 10700684-49649204-52000001
Our branches:
5600 Békéscsaba, Teleki u.6.
9027 Győr, Gyóni Géza sétány 4/A IV. em. 406.
7636 Pécs, Fáy András u. 24. II. em. 3.
6791 Szeged-Kiskundorozsma, Széksósi út 10.
9700 Szombathely, Kárpáti Kelemen u. 120.
5000 Szolnok, Liget út 7. fszt. 1.
4400 Nyíregyháza, Szegfű utca 73.
2117 Isaszeg, Rákóczi út 15.
8200 Veszprém, Rákóczi út 5.
8630 Balatonboglár, Mikszáth u. 17.
Our colleagues
Downloadable documents
Data sheet
General Information and Guidelines for Liquidation Proceedings
Environmental Declaration based on Government Decree No. 106/1995. (IX.8.)
Bank account numbers necessary for the payment of the registration fees
ISO Certification
Complaint Management System
FAQ
1.) What is the difference between bankruptcy and liquidation proceedings?
The purpose of bankruptcy proceedings is that the debtor should make a composition with its creditors, and should ensure the further operation of the enterprise according to the plan worked out during the bankruptcy proceedings.
The purpose of liquidation is to terminate the insolvent debtor without a legal successor, in the process of which the creditors of the debtor will receive some satisfaction pursuant to the regulations set out in the bankruptcy law.
2.) Who falls within the scope of the bankruptcy law?
Business units and their creditors fall within the scope of the law, therefore private entrepreneurs who are debtors do not.
3.) Who is regarded as a creditor in bankruptcy and liquidation proceedings?
A person who has a financial claim against the debtor either in pecuniary or monetary terms acknowledged or not disputed by the debtor, and which is based on a legally binding and enforceable decision made by a court of law or any other authority is regarded as a creditor.
4.) Who might initiate bankruptcy proceedings?
Bankruptcy proceedings might be initiated by the leader of the indebted business unit.
5.) What documents must be attached to the bankruptcy petition?
A document certifying the agreement of the management board of the business unit, a balance sheet dated within the last three months, the debtor’s taxation No., the list of creditors, the amounts of credits and their expiry dates and the documents certifying the payment of the publication fee. In the petition the debtor must make a declaration whether it has already been granted a moratorium in the framework of a bankruptcy procedure in the past two years.
6.) Is it possible to start liquidation proceedings against a debtor against whom a bankruptcy procedure is in progress?
Until the legally binding completion of the bankruptcy procedure, the court suspends making a judgement on any liquidation petition filed in the meantime.
7.) What does a moratorium mean in bankruptcy proceedings?
During the period of the moratorium, the enforcement of financial claims is suspended. Nevertheless, the following things must be paid during the bankruptcy proceedings: wages and wage-type liabilities and the advance payments of the personal income tax imposed on them, health insurance contribution, pension contribution, social security contribution, accident annuity, and the contribution based on the law on the promotion of employment and support for the unemployed, severance payment, alimonies, life annuity, compensation annuity, supplementary wages for miners, vocational contribution, benefits and allowances due to pupils taking part in vocational training, water and sewage fee, the cost of the trustee, and the VAT incurred during the bankruptcy proceedings.
8.) How long does the moratorium last and can it be extended?
The moratorium lasts for 90 days and it can be extended by a further period of 60 days.
9.) What’s the condition of creating a bankruptcy composition?
The proposal prepared by the debtor aimed at restoring solvency and the proposal for the composition must be accepted by more than half of the obligees of creditor’s claims which became overdue upon the commencement of the bankruptcy proceedings as well as by more than a quarter of the obligees whose claims are not yet overdue on condition that the amount of these claims takes up two thirds of the amount of the claims included in the balance sheet submitted upon the commencement of the bankruptcy proceedings.
10.) Who may initiate liquidation proceedings?
Liquidation proceedings may be initiated by the debtor, creditor, administrator or the competent company court.
11.) What must the liquidation petition submitted by the creditor contain?
The petition must contain the title of liabilities, their expiry date and a short description why the creditor regards the debtor insolvent. All this must be supported by documents and a document certifying the payment of the publication fee must also be attached.
12.) May the debtor apply for a moratorium on the payment of its liabilities following the notice of the court?
Yes, it may, the period of which may be maximum 30 days.
13.) What are the criteria of determining insolvency?
The court declares the debtor insolvent if
– it failed to settle an acknowledged or not disputed debt in 60 days after it has become due,
– the enforcement conducted against the debtor was unsuccessful,
– it failed to fulfil its payment obligation despite the composition agreed on in the bankruptcy proceedings.
14.) When can you regard the dispute of a claim successful?
The creditor’s claim may be regarded disputed as long as
– it has already been disputed prior to the court’s notice,
– the debtor can prove its state of affairs,
– the debtor refers to such circumstances which – in case of being proven – excludes the validity of its debt or its due date.
15. ) If the creditor initiates liquidation on the basis of an unsuccessful execution, can the petition be based on an unsuccessful immediate collection order?
The immediate collection order itself is not sufficient, only a collection order submitted in the framework of a court execution procedure.
16.) Who may be appointed a liquidator?
Those organisations might be appointed a liquidator which are included in the Register of Liquidators held at the Finance of Ministry. A person / a company who/which himself/itself is an owner, or whose owner is either an owner or a creditor of the debtor or any of its leading officers or close relatives may not be appointed a liquidator.
17.) Is it possible to appeal against the order appointing the liquidator?
No, it isn’t.
18.) What are the duties of the leader of the debtor under liquidation?
The duties are included in the available sample documents called “General Information and Guidelines for Liquidation Proceedings”.
19.) What sanctions might be imposed on the leader of the debtor company if he fails to comply with the obligations set out in the bankruptcy law?
The court might impose on the leader of the debtor a fine of up to 50% of his income earned in the year preceding the commencement of the liquidation, or a fine of up to HUF 1 million if the leader’s income cannot be determined if he fails to comply with his obligations set out in the bankruptcy law even if he is not in employment relationship with the debtor, or his membership relationship, or his leading officer assignment has been terminated.
The liquidator must report any criminal offences coming to his knowledge in connection with the activity of the debtor.
20.) To what extent are the debtor’s rights restricted following the commencement of the liquidation?
Following the commencement of the liquidation, the owner’s rights connected to the debtor company are terminated and only the liquidator may make any legal statements in respect of the debtor’s assets.
21.) In what cases may claims be set off in the course of liquidation?
In the course of liquidation, only such claims may be set off which the liquidator recorded as acknowledged ones, and in respect of which there has been no conveyance following the commencement of the liquidation.
22.) Does the creditor who initiated the procedure to enforce its claim prior to the commencement of the liquidation have to announce its claim in the liquidation?
Yes, it does.
23.) Will encumbrances on the assets of the debtor be released during the liquidation?
Yes, the ban on alienation and encumbrances is released upon the commencement of the liquidation, whereas the buyback and purchase right and any lien are cancelled simultaneously with the sale of the asset.
24.) Within what time span and under what conditions might the liquidator start avoidance action against a contract concluded by the debtor prior to the liquidation?
In 90 days from the commencement date of the liquidation the liquidator may start an avoidance action against a contract or any other legal statement made by the debtor one year prior to the liquidation proceedings if it is concerned with
– a free alienation of the debtor’s assets
– a legal transaction to the benefit of a third party concluded with a strikingly disproportionate differential in its value,
– any other legal transaction aimed at circumventing the creditors, which decreases the assets of the debtor.
25.) When can a composition be concluded during liquidation?
40 days after the publication of the court order on liquidation in the Company Gazette and until the submission of the closing balance sheet for liquidation.
26.) Who initiates the composition during liquidation?
The debtor does.
27.) What’s the criterion of creating a composition?
There could only be a composition if at least half of the creditors entitled to make the composition in each group {57.§. paragraph (1) points b), d), e), f ) and g) }consent to that on condition that their claims take up two thirds of the total claims of the people entitled to make the composition.
28.) If there is a necessary ratio of creditors for the creation of the composition, will the scope of the composition apply to the creditors who have not approved of the composition?
Yes, it will (a cramdown).
29.) May the liquidator pursue the debtor’s activity under liquidation?
Yes, he may, subject to the consent of the creditors’ committee.
30.) Does the liquidator have to take into account the so-called well-known claims included in the debtor’s register?
No, he doesn’t, each and every creditor must announce their claims and the related registration fee must be paid to the bank account of the court’s Economic Office.
31.) Does the registration fee have to be paid after the interest rate claim, as well?
Yes, it does.
32.) Can the creditor get a certificate about the fact that its claim is uncollectible without the payment of the registration fee?
Yes, it can, but the creditor must apply for that.
33.) Is the liquidator entitled to cancel the contracts concluded by the debtor earlier?
Yes, he is.
34.) In what form can the liquidator sell the debtor’s assets?
The liquidator may only sell the debtor’s assets in the form of a tender or an auction. He might only deviate from this subject to the consent of the creditors’ committee or if the expected revenues do not cover the costs of sale, or if there is a difference less than HUF 100 000 between the expected revenues and the foreseeable costs of sale.
35.) During the sale of the debtor’s assets conducted by the liquidator, can any of the creditors resort to credit-bidding if it appears as a buyer for the assets of the debtor?
No, they can’t, nobody is allowed to resort to credit-bidding in a public auction.
36.) Where does the liquidator have to publish the advertisements related to the sale of liquidated assets?
In the Company Gazette.
37.) How can those entitled to a pre-emption right make use of their rights during the sale of the liquidated assets?
They can exercise their pre-emption rights in the framework of public sales, thus they must announce during the sales procedure that they would like to exercise their pre-emption rights.
38.) Within what time span may the activity of the liquidator be objected to?
Anybody can make an objection to the liquidator’s unlawful measure or omission at the court which ordered the liquidation in 8 days from the time of becoming aware of it.