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    Bankruptcy proceedings in Greece

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    Bankruptcy proceedings in Greece

    Bankruptcy proceedings aim at the complete repayment of a debtor’s creditors through the liquidation of his/her assets, or in any other way provided in the restructuring plan, and especially through the continuation of his/her business (Article 1 of Bankruptcy Greek Code).

    The necessary preconditions for bankruptcy declaration are the possession of a commercial license by the debtor and an established state of cessation of payments, or an imminent inability to pay future debts.

    After the declaration of bankruptcy, a Judge Rapporteur is appointed to supervise and expedite the bankruptcy proceedings, take all urgent measures to secure the bankrupt estate and supervise the work of the bankruptcy trustee.

    The trustee is appointed by the decision declaring bankruptcy and should always be a lawyer.  The trustee has the central role in the proceedings, managing the bankrupt estate and conductingthe bankruptcy procedure.

    The creditors’ assembly is a body adopting resolutions or consulting on major issues pertinent to bankruptcy.

    The creditors’ committee is a new body, introduced by the Bankruptcy Code. It is voluntary and if established, it exercises all legal actions provided by Law.

    More specifically, upon the declaration of bankruptcy:

    1) the debtor is deprived of the administration (managing and disposing) of his/her estate (insolvency divestment), which is exercised only by the bankruptcy trustee,

    2) all individual recovery measures of the creditors against the debtor, for the satisfaction or the fulfilment of their bankruptcy claims, are suspended ipso jure (suspension of individual claims), without prejudice to the provisions concerning secured creditors,

    3) any claims of bankruptcy creditors not due, are considered due and payable, except for those of secured creditors,

    4) the claims of creditors cease to bear legal or contractual interest, except for those of secured creditors.

    In the case of legal persons, the most significant consequence of bankruptcy declaration is their dissolution. Bankruptcy of general or limited partnerships results in co-bankruptcy of all general (but not of limited) partners.

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