ECONOMIC AND SOCIAL COUNCIL DISCUSSES NEW BANKRUPTCY ACT

ZAGREB, July 7 (Hina) - Of 12,500 employees with 208 companies where conditions have been met for instigating bankruptcy procedures, about 8,000 workers can return to their jobs as soon as the bankruptcy procedures are launched and the ownership structure and management are changed, Croatia's Economic and Social Council (GSV) assessed. Government officials, unionists and employers have agreed on the necessity for restructuring of the economy, even if one of methods is the opening of bankruptcy, but it should be done provided that workers' rights are protected and re-employment ensured. During Friday's session, the GSV concluded that for firms, owned or co-owned by the government, programmes of restructuring should be drafted and subsequently considered by the Management and unions together. The Council endorsed draft amendments to the bankruptcy act. According to Vitomir Begovic, the incumbent chairman of the Council, amendments should help improve the position of employees with companies that have filed for bankruptcy, as claims for them will be first paid. When the new law becomes effective it will be implied in cases of bankruptcy procedures that started before, so that the sequence of creditors will be changed regardless of when the bankruptcy procedures have been open. (hina) jn ms