DEBTOR’S PLAN OF REORGANIZATION IN THE REPUBLIC OF MACEDONIA
DEBTOR’S PLAN OF REORGANIZATION IN THE REPUBLIC OF MACEDONIA

Summary/Abstract: The essence of bankruptcy legislation is to enable efficient and rapid liquidation or reorganization of the company in order to keep on its business, to stop the financial decline and pay back the creditors. The aim of this paper was to analyze the national legislation, particularly the reorganization of the debtor as a second chance of the economic entity to remain active in the economy, but also to pay the overdue and current liabilities to creditors. The investigation was done by studying legal provisions regarding this issue as well as by critically reviewing the existing literature in this area. It was observed that concerning the EU legislation, reforms in this area aim in increasing the possibility and necessity of debtor’s reorganization, rather than its liquidation, in order to achieve several economic effects, such as resuscitation of the debtor, which will enable to continue creating capital, debtor’s ability to meet its commitments to creditors and an opportunity to continue working in the labour market. In Republic of Macedonia, the number of proceedings for reorganization in bankruptcy is small because in most cases the debtors submit a plan of reorganization too late i.e. usually when they are financially completely exhausted, and their revival is almost impossible.

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