Bankruptcy reform hits bump

Business groups have been counting on passage of a new bankruptcy act to make it easier to save troubled companies, but Vice Premier Martin Jahn told Euro that the projected effective date of Jan. 1, 2006, is in jeopardy. Jahn and Finance Minister Bohuslav Sobotka want to turn more bankruptcy control over to creditors, but Justice Minister Pavel Němec is pushing to keep judges in control of the process. Justice ministers have historically found it hard to stand up to the powerful judges' lobby. In Němec's case, there's also the issue of political relevance. He longs to get credit for bankruptcy reform, but he instead risks being shut out of the process. Industry Minister Milan Urban told MFD that he'll seek to have Němec's proposal withdrawn. Němec can put up a stubborn fight - and likely lose - or share the credit for one of the coalition's biggest successes. [Czech Republic insolvency composition lobbying MF Dnes magazine]