Assessment of impact of changes in bankruptcy law

In 2018, there were 1466 bankruptcy petitions filed in Estonia, of which 67% were bankruptcy petitions of natural persons. However, only 644 bankruptcies were declared, of which 84% were natural persons. Nearly half of the bankruptcy petitions in Estonia end with an abatement of bankruptcy proceedings. The average bankruptcy procedure for a legal person lasts for 3.5 years and for a natural person for 1.2 years. On average, only 14% of claims of legal persons are satisfied through bankruptcy proceedings. In order to make the insolvency proceedings faster, more efficient and transparent, which in turn would increase the disbursements to obligees and improve the Estonian business climate, the Ministry of Justice carried out an insolvency law review.
The study analysed six possible regulatory changes proposed as a result of the insolvency review. The results were briefly summarised as follows.

Client:

Republic of Estonia Government Office

Implementation period:

2019

Cross-border Movement of Companies

In the EU, there is regulation for mergers of limited liability companies (Directive 2005/56/EC). Cross border transfer of registered office from or into Estonia so that the company continues its activities registered in the other country’s register is not possible. Also, cross-border divisions and cross-border mergers outside the scope of the directive are not possible. The purpose of this research is to identify the economic and legal problems arising from insufficient regulation of cross-border movement of companies from the perspective of practitioners and the Estonian business environment.

Client:

Government Office of Estonia, Ministry of Justice

Implementation period:

2016

Evaluation of socio-economic effects of a biorefinery

A group of Estonian investors with long-term experience in forest and timber industry is considering the construction of a modern biorefinery in Estonia. The cost of the refinery is projected to be EUR 830 million to 1 billion depending on the chosen capacity, which would make it the largest private capital investment of all time in Estonian manufacturing. In this study, we estimated the socio-economic impacts of the biorefinery on GDP, employment, tax revenue, transport and renewable energy.

Client:

Est-For Invest

Implementation period:

2016-2017