KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER GREEK LAW -
In the Greek law there are several types of proceedings addressing the inability of a merchant debtor (either a natural person or a legal entity) to pay its debts. On one hand, there are Bankruptcy and Special Administration, which are focused mainly on the payment of its debts to its creditors, mainly by liquidation of the debtor’s assets. On the other hand, there are the so-called pre-bankruptcy proceedings whose main purpose is to maintain the debtor’s undertaking by a restructuring of its debts. The pre-bankruptcy proceedings are the Rehabilitation Proceedings and the Out of Court Workout.
Before and during the above-mentioned bankruptcy and pre-bankruptcy proceedings, a protection of the debtor’s assets may be provided for the purposes of each procedure. As a result, there are restrictions for the debtor regarding the freedom of administration or transfer of its assets and for the creditors regarding the enforcement of their claims on the debtor’s assets.
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