Clifford Chance
Coronavirus: First aid measures in Czech insolvency law
2 April 2020
On 31 March 2020, the government of the Czech Republic approved a bill on certain measures to mitigate the impact of the SARS-CoV-2 coronavirus outbreak (also referred to colloquially as "Lex Covid"). On 1 April 2020, the bill was tabled in the House of Representatives as Bill 807.
Several of the measures proposed in the bill specifically concern corporate insolvency proceedings. These measures are exceptional not only in their contents but also as regards the timeline within which the bill has been prepared and is expected to be approved by Parliament and enter into force.
The current assumption is that the bill will become law and take effect almost immediately after Parliament is able to discuss it. The bill's impact could therefore be imminent. This article briefly outlines the proposed measures, mainly from the perspective of the debt and other financial markets.
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