An amendment to the Bankruptcy Act was passed by Parliament in March, which should accelerate bankruptcy procedures in the Czech Republic. In particular, the amendment introduces a new definition of insolvency, and also cancels certain transactions made in the six months prior to the bankruptcy filing date. This latter measure should prevent the transfer of business assets before the bankruptcy filing date. The amendment further makes it more difficult to call for a protective period, which is considered to be the preliminary stage of bankruptcy. In particular, a protective period is only available to companies which employ more than 50 employees.
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