Restructuring and insolvency—Greece—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Greece—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Greece—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Greece published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: PotamitisVekris—Eleana Nounou; Konstantinos Rachianiotis; Stathis Potamitis

1. What main legislation is applicable to insolvencies and reorganisations?

The Bankruptcy Code (in its current state, Law 3588/2007 as amended by Law 3858/2010, Law 4013/2011, Law 4055/12, Law 4072/12, Law 4336/2015, Law 4446/2016, Law 4472/2017, Law 4491/2017, Law 4512/2018 and Law 4689/2020) is applicable to bankruptcies and reorganisations in Greece. The Bankruptcy Code provides for reorganisation as an alternative to liquidation. Moreover, Greece, by virtue of Law No. 3858/2010, adopted the UNCITRAL Model Law on Cross-Border Insolvency. Finally, because Greece is an EU member state, the EU Regulation on Insolvency Proceedings also applies.

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

Bankruptcy proceedings may be initiated by or against any merchant (individual or legal entity) or any for-profit legal entity.

Public entities and local authorities cannot be declared bankrupt.

Regulated entities are governed as follows:

  1. insurance companies can be declared bankrupt but not prior to the conclusion of a special winding-up process as provided by Law 4364/2016 that adopted the provisions of Directive 2009/138/EC;

  2. any credit institution whose licence is

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