Give a brief overview of the reorganization and insolvency regulation in Greece?
Rescue and insolvency procedures are governed by the Bankruptcy Code (statute 3588/2007). However, the compulsory winding-up proceedings of credit institutions and insurance undertakings are subject to sector-specific legislation. The Bankruptcy Code, as now in force, envisages that a distressed or bankrupt debtor may be subject to the following procedures:
Rehabilitation process of articles 99 et seq.;
Post-bankruptcy reorganization process of articles 107 et seq; and
Post-bankruptcy liquidation process.
Post-bankruptcy proceedings aim to repay creditors and also, if possible, rescue and restructure an insolvent company’s business. On the contrary, pre-bankruptcy procedures aim at the reorganization of the debtor’s business and its continuation following an agreement with the majority of its creditors. The Bankruptcy Court, which supervises these proceedings, is a three-member court of first instance in the geographical region where the debtor has its key establishment.