The Project will work towards identification of the key legislative obstacles to the implementation of viable debt resolution mechanisms and then support the improvement and implementation of such legislation in Bosnia and Herzegovina (BiH). The emphasis of reform will be on promoting rehabilitation of viable companies and increasing loan recovery.
The Program will also work on the review of the insolvency and other provisions to allow and promote implementation of special filing and hearing procedures. The Project will also help identification of threatening insolvency and timely submission of proposals for initiation of the bankruptcy proceedings
In Bosnia and Herzegovina, the Program will concentrate on the ways to assist parties in the restructuring process (pre-bankruptcy proceedings), court negotiation phase as well as on avoiding any abuses of the process. The Program focus will be on practical aspects of the implementation of workouts restructurings, as well as on incentives that promote restructuring of financially distressed, but viable firms.
The Program will also work on enhancing the capacity of relevant professionals such as judges, attorneys and business people, through training on the principles of bankruptcy and insolvency, valuation and maximization of assets. It will encompass activities and events that would increase the awareness of the stakeholders' roles and responsibilities and of the individual and overall benefits of exercising the opportunity for reorganization (versus liquidation).