His presentation will describes endeavours to implement modern information technologies into the system of insolvency proceedings in the Czech Republic. It concerns the problem of cooperation of scientific workplaces with state institutions – especially the Ministry of Justice of the Czech Republic – in the field of refining legislation and improvement of collection of statistical data and their further processing and utilization. In addition to obtaining information on the effectiveness of insolvency proceedings, there is also the possibility of actively working with data, e.g. usage of mathematical methods, especially regression analyses to the large-scale analysis of large sets data with the aim of defining such cases of insolvency proceedings whose results or course could indicate contravention of laws, or indicate the rise of situations which would be apposite to examine from the sides of auditing bodies.

1. Czech Republic – Debts and Current Challenges in the
Corporate and Personal Insolvency
Luboš SMRČKA
University of Economics in Prague, Faculty of Business Administration, Department of Strategy
December, 4th and 5th 2017, CONFERENCE ON UNIVERSITY & BUSINESS COOPERATION
IN CENTRAL EUROPE
http://www.doingbusiness.org/data/exploreeconomies/czech-republic
http://www.doingbusiness.org/data/exploreeconomies/poland

2. State Duration (years) Expenses
(% of yield)
Yield
(% of investment)
CR 2,1/3.2 17 67/56.3
OECD (average) 1.7 4,1/9 71,2/70.6
Finland 0.9 4 89.7
Germany 1.2 8 78.1
Italy 1.8 22 63.4
Poland 3.0 15 63,1/54.5
SR 4.0 18 54.3
Sweden 2.0 9 74.7
UK 1.0 6 88.6
USA 1.5 7 81.5
Duration of insolvency proceedings, their expenses and yields therefrom
for 2017/2013 in selected OECD states
Source: Doing Business 2014, www.doingbusiness.org

3. http://www.justice.cz/Justice2/Uvod/uvod.aspx

6. Reference period – from the 1th January 2008 to 31th December 2013
Type of the insolvency proceedings - the insolvency proceedings to
entrepreneurs physical and legal entities initiated after the insolcency
proposal and finalized by the approval of the final report.
Method of finalization
4 waves, 2751 cases
about 20% of all cases

7. http://www.pixeladmin.cz/insolvency-questionnaire.cz/

8. - identification of the debtor;
- identification of the insolvency administrator;
- date of filing the petition for bankruptcy;
- date of ruling on bankruptcy;
- date of decision on the manner of settling the bankruptcy with denotation of the manner in
which the bankruptcy is to be settled;
- date of possible changes in the manner of settling the bankruptcy with a variant;
identification of the type of change;
-amount of deposit for costs of the insolvency proceedings if it was paid, and who paid it;
- the number of days that elapsed between the making public of the insolvency proposal and -
the making public of the ruling on the bankruptcy (a ruling which has come into legal force);
- the number of applications of secured creditors and the number and amount of their
receivables (whether recognised or unrecognised);
- the amount of satisfaction for secured creditors;
- the number of applications from unsecured creditors;
- the amount of receivables beyond the property base or receivables deemed equal to them
and their volume;
- the number of incidental lawsuits conducted by the insolvency administrator;
- the volume of receivables in the lawsuit; duration of individual lawsuits;
- the volume of receivables arising after the announcement of the manner in which the
bankruptcy is to be settled (including costs of the preliminary insolvency administrator);
- estimate of the property base: cash + estimate of liquid assets + estimate of fixed assets +
other;
- yield of liquidated assets (liquid and fixed),

9. Expected possibilities of the new system
to ascertain current trends in proceedings
to ascertain and to analyse the development of the main parameters of
proceedings - the level of satisfaction of the different types of receivables,
the duration of proceedings, the time that between certain crucial steps in
proceedings, remuneration of insolvency administrators, total costs of
proceeding
to define groups of insolvency proceedings according to debtor
characteristics (for instance its size, number of employees, legal form etc)
the detection of such insolvency proceedings in which certain parameters
diverge from the standard framework.

10. An example of analytical utilisation of data
to study relation/dependence of the crucial parameters
It is possible to form time series of results
It will be possible to discover differences between individual regions
It will be possible to find “usual paths” of the course of events
delimited by frequently appearing proceeding parameters
to propose further amendments to the Insolvency Act on the
basis of knowledge of real results of insolvency proceedings

11. Complete the collection and summarization of economically
significant data from final reports and application forms in
insolvency proceedings and their ongoing evaluation and
publication. Now we are at the stage of having a data collection tool.
Conclusion – current challenges
http://www.justice.cz/Justice2/Uvod/uvod.aspx

12. 190. Notice implementing paragraph 3 (3) of the Insolvency Act
191. Notice about details of filing and electronic filing forms implementing
in insolvency proceedings…etc.

13. The Supreme Court
Clifford Chance, Prague
https://en.wikipedia.org/wiki/Harry_Pollak

14. Side/Secondary
specializaton TAM
WHITE & CASE
3SG821 Transformation and restructuring of the company
3SG826 Due Dilligence
3SG823 The value of the company
3SG824 Risk analysis and financial modeling
3SG825 Corporate Governance

15. Thank you for your attention
TD020190