Indecon Consulting

[Serbia] – Training of Insolvency Administrators

Assignment Name

Training of Insolvency Administrators




April 2007 - July 2008


  • indecon (lead)
  • BBL Bernsau Brockdorff & Partner (member)


The Bankruptcy Proceedings Law (from 2004) stipulated that Insolvency Administrators are required to be licensed prior to being assigned to a case by the respective commercial court. In order to obtain such a license candidates need to pass a professional examination held by the Bankruptcy Supervision Agency. The exam is based on a comprehensive curriculum comprising legal and business aspects. 332 licenses for insolvency administrators had been issued until the end of 2006.

However, the way insolvency administrators were approaching their cases revealed a general focus and preference to liquidate the assets of the insolvent enterprise and thus closing it down rather than assessing and pursuing its restructuring potential (going concern). Closing down enterprises undergoing insolvency procedures leads to rising unemployment and increased social hardship. Assessing and pursuing restructuring potential bears the potential of employment and fiscal income through taxes.

The focus of this project was on capacity building of insolvency administrators in the field of enterprise restructuring as an alternative instrument to closing them down. The project supported the Bankruptcy Supervision Agency in developing and introducing a training program for qualifying bankruptcy administrators to identify and pursue restructuring potential in insolvency cases. The curriculum of the required licensing exam was adapted accordingly.

Type of Services Provided

  • Identification and analysis of a pilot insolvency case, suitable for restructuring;
  • Preparing alternatives to the existing reorganisation plan for chosen pilot case, including the identification of potential market fields for the different ”going concern” parts;
  • Reviewing the reporting mechanism of SOEs undergoing bankruptcy procedure and the analysis procedure by the recipient;
  • Developing and introducing a training programme for insolvency administrators according to national requirements and individual needs;
  • Development of optimised training material comprising analysis tools for identifying restructuring potential including a possible different use of the enterprise assets, i.e. change of business type;
  • Training and coaching of insolvency administrators with regard to corporate governance principles and their rights and duties and in applying analysis tools in the field of enterprise restructuring through seminars and on-the-job training;
  • Training and coaching insolvency administrators in assessing and developing viable business cases among their assigned insolvency cases thus providing business advisory services;
  • Train the trainers within the Bankruptcy Supervision Agency;
  • Introducing analysis tools in the curriculum relevant to the licensing exam for insolvency administrators