Finance Minister Slavko Linic reiterated on Tuesday that the Zagreb Commercial Court judge who decided to suspend the pre-bankruptcy settlement proceedings in the case of power transmission equipment manufacturer Dalekovod until the Constitutional Court decided whether the Financial Operations and Pre-Bankruptcy Settlement Act was in line with the Constitution, had caused legal uncertainty with the explanation of his decision today in which he practically accused the government and parliament of criminal activities.
Linic and his associates held a news conference today after judge Mislav Kolakusic issued a statement earlier today explaining his decision of 22 July to suspend the pre-bankruptcy settlement proceedings and announcing that he would ask the Constitutional Court to decide whether the Financial Operations and Pre-Bankruptcy Settlement Act was in line with the Constitution.
The judge, says Linic, has no authority to make such a request on his own, but he can only ask that this proposal be supported by other judges as well, namely he has to explain to his colleagues first what is unconstitutional in the said law and only then the Commercial Court can ask that it be assessed if the said law was in line with the Constitution.
Linic assessed as "very dangerous" the part of the statement in which Judge Kolakusic said that during the proceedings he was under the impression that certain regulations of the said law and their application were in violation with the Constitution, to the detriment of creditors, the state budget and citizens.
"The judge accuses parliament of adopting a criminal act and the executive government of being involved in criminal activities. The judge sees the application of this law as the abuse of powers because some creditors were offering more favourable conditions for the payment of their claims, which is to the detriment of other creditors and the state. This is insulting and we have the right to respond to that," Linic said.
According to Linic, the judge believes that courts have the final saying in bankruptcy proceedings and that the above-mentioned law deprives them of this right.
This is why the Finance Ministry presented the results of bankruptcy proceedings and pre-bankruptcy settlements.
Deputy Finance Minister Boris Lalovac and Assistant Finance Minister Branko Segon presented figures according to which at present 89 bankruptcy proceedings last over 10 years, 166 last more than five year and 287 last more than three years.
Since 2001, of nearly HRK 10 billion of state claims in bankruptcy proceedings only HRK 873.3 million have been collected which is about 10%, while last year only 2% have been collected due to recession.
Segon said that in pre-bankruptcy settlements that state manages to collect approximately 70% of its claims (without interests), through re-programming plans, smaller one-off payments, exchange for real estate, debt conversion into equity etc.
Linic said that the state was not generous in these proceedings, that a large number of proposals had been rejected which is why one could not speak of abuse, reiterating that judge Kolakusic had no grounds for his decision.
Earlier today, the Croatian Judges' Association (UHS) issued a statement condemning as "unacceptable and uncivilised" Linic's statement in which he said he was appalled by the decision of the Commercial Court judge to suspend the pre-bankruptcy settlement proceedings in the Dalekovod case. Linic responded that judges too can be criticised.
