DEBTORS’ ASSET SIZE AND PRACTITIONERS’ APPOINTMENTS WITHIN INSOLVENCY PROCEDURES IN CROATIA

Abstract

This paper aims to answer the following research question: what is the common debtors’ assets size within the insolvency proceedings in Croatia, and what is the relation of the size of the assets to the appointment system? The goals and purpose are to deliver a dynamic, analytical overview of the of appointment system of insolvency practitioners in the Republic of Croatia, and to study them in relation to the debtors’ asset size. The database of appointments, originally published by the Croatian Ministry of Justice, is here coupled with the annual financial reports data, which created an initial matrix of 32,840 appointments among cases with a total nominal value of 70.07 billion HRK (9.34 billion €). The results show that the Croatian insolvency system annually, on average, processes cases with a total value of approximately 10 billion HRK (1.33 billion €), which indicates the importance of this system for the economy in general, but also for the legal system which regulates it. Furthermore, for the first time in Croatia, the results provide public insight into quantitative indicators on a national level, which opens a new area for broader examination.