Bankruptcy & Restructuring Law

Every business can reach a point where liabilities exceed liquidity. It is not always a failure. It is often a matter of timing and choice. The choice you make at that juncture determines whether the business continues or comes to an end.

Bankruptcy or Restructuring? What Applies to Your Business

Greek bankruptcy law does not automatically lead to "closure." Law 4738/2020 (the new Bankruptcy Code) opens specific pathways for an exit, through debt settlement, restructuring of liabilities, and, in certain cases, a suspension of payments based on the relevant procedure that can also lead to a full discharge (debt write-off). Which path suits your specific case depends on your company's precise financial data as well as a clear understanding of the legal consequences of each option.

What You Gain from the Strategic Restructuring Process: 

Restructuring constitutes a means to prevent/avoid bankruptcy. Restructuring transforms debt from an unbearable burden into a manageable liability; however, specific and strict legal conditions are provided that must be met for this choice to lead to a successful outcome. Through the proper application of the law, we fortify your business, ensuring:

• Instant "freezing" of auctions and the immediate suspension of every enforcement measure by banks, funds, and the State.
• Drastic reduction of debts through a generous "haircut" on principal and a total write-off of interest or surcharges, or long-term rescheduling of monetary payments.
• A sustainable settlement, with a repayment plan fully tailored to the actual cash flows of your business.
• Protection of your property and ensuring the continuity of the company's operation, without the fear of bankruptcy.

What You Gain by Choosing Bankruptcy?

The bankruptcy process is no longer a choice associated with the negative consequences or negative stigma of the past. On the contrary, the legislator encourages the debtor—and indeed immediately if possible—to resort to the expedited judicial bankruptcy procedure, in order to satisfy, if possible and to the extent possible, a portion of their debts, and to seek a discharge/write-off regarding the remainder. The legislative encouragement for bankruptcy is summarized in the phrase "fresh start", which is also utilized by other legal systems, for the entrepreneur and the professional who failed in certain choices but persists and seeks a new beginning. 

What Our Law Firm Undertakes

Our firm, in collaboration with certified auditors and financial advisors, covers the entire spectrum, undertaking:

• The business restructuring process (Law 4738/2020)
• The analysis and fulfillment of the legal and financial prerequisites of the law
• The judicial process for the success of the restructuring 

Alternatively, we undertake:

• The bankruptcy petition 
• The judicial process 
• The fulfillment of prerequisites aiming at debt discharge (write-off)

The above provides completely brief and preliminary information. Contact us today, and a specialized lawyer from our firm will provide you with a clear picture to help you understand what applies to your specific case.

Frequently Asked Questions (FAQ)