Restructuring and insolvency—Cyprus—Q&A guide

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

  • Restructuring and insolvency—Cyprus—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—Cyprus—Q&A guide

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

Authors: CITR Cyprus Ltd—Vice Mandaric; Miriam Simsa

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

Cyprus has relevant applicable legislation for both personal and corporate insolvency. The Bankruptcy Law and amended Bankruptcy Rules will relate to personal insolvency. In 2015 new legislation came into order (Law 65(I)/2015), related to Personal Repayment Plans and Debt Relief Orders.

Corporate insolvencies and reorganisations are governed by The Companies Law (Chapter 113). Subsequent amendments to the Companies Law were passed in 2015, when examinership was introduced as a new procedure of reorganisation.

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?

Neither personal or corporate legislation provide for special entities that are to be excluded from insolvency or reorganisation proceedings. Financial institutions and insurance companies will however follow special procedures.

Personal insolvencies will not include belongings that are essential for accommodating a minimum quality of life. Cypriot legislation will grant to the interested person the option to request from the court a debt relief order if certain criteria are met as: personal assets of no more than €1,000, a monthly

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