European Union: Insolvency/Bankruptcy/Re-Structuring

Law 4738/2020 introduces critical mechanisms for debt restructuring in Greece, fundamentally transforming how debtors can recover tax and social security clearance certificates. The regulatory framework presents two distinct pathways—the Out-of-Court Debt Settlement Mechanism and the Rehabilitation Agreement—each offering different advantages for unlocking transactional capacities and ensuring business viability through varying withholding requirements and clearance certificate provisions.

The creditors' committee serves as a crucial oversight body in German insolvency proceedings, wielding significant monitoring and co-determination powers over the insolvency administrator.

A key issue in the event of the submission of an application under the out-of-court debt settlement mechanism, the conclusion of a restructuring agreement, or the bankruptcy of a legal entity, is the treatment...