Hungary introduces new rules for liquidators

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By Dénes Szabó

The Hungarian government has recently adopted a decree introducing a new electronic auction system to be applied in the course of the public sale of the assets of companies in liquidation. Pursuant to this regulation, which will be effective as of 15 January 2015, public tenders and auctions initiated by liquidators have to be organised and effected via this new electronic system. Accordingly, all assets (claims, rights, movables, real estate, etc) subject to the tender have to be uploaded to the electronic system. Potential buyers have to submit their offers electronically as well. Potential buyers first have to register against payment in the electronic system and only registered buyers will be entitled to participate in the tenders. Nevertheless, the database consisting of the assets of the debtor companies will also be available for those who have not registered, e.g. for attorneys. Under the system, liquidators will have to publish their method of evaluating the offers received and the winning buyers as well as give reasons if a tender or auction failed. Attorneys representing potential buyers from liquidators under the new system will have to pay attention to the deadlines set in the Bankruptcy Act, which will be supplemented with the additional time constraints set by this new governmental decree…

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