Summary inefficency of bankruptcy procedures in Serbian economy: Case study of PKB -Voćarske plantaže-Boleč companys

Abstract

Bankruptcy procedures are devised for companies which are entering into a more serious operational crisis, which means they are not able to regularly abide to their short-term and long-term responsibilities. Thus, to keep the creditors form incurring any damages, a special procedure is introduced and that is the bankruptcy procedure. The bankruptcy procedure is introduced upon the suggestion of the creditors or debtors and certainly its goal is to consolidate business ventures of the company in a particular timeframe where it would be "protected" from paying out the creditors. Of course, that timeframe should be as short as possible, or, in a reasonable deadline (e.g. a year or two). The majority of former companies went through bankruptcy procedures because of poor business which did not suit the market. Were they run and did they last in a reasonable timeframe? Were the businesses reorganized thorough reconstruction and modernization? in this paper we will try and answer what would contribute to the reorganization and continuation of business. We will focus on the former giant in the are od fruit production and that is certainly PKB -Voćarske Plantaže Boleč.

Keywords

• bankruptcy
• management
• reorganization