AG Erotocritou LLC
A.G. Erotocritou LLC has firmly established itself as a “top tier” leading law firm in Cyprus, having cultivated an unrivalled reputation for excellence, with an impressive track record and an all-embracing legal service capability, underpinned by an acute sense of commercial awareness. The firm’s achievements have been duly recognised and endorsed by selected international legal directories such as Chambers and Partners, Legal500, IFLR, WhosWhoLegal and Client Choice / International Law Office. Amongst others, the firm has been recognised as “an exception in the Cyprus market where everyone does everything”, a firm which “is always there for the client” and has “all the professionalism you would expect from a large international firm”.Show more
Insolvency & Restructuring
As a result of the numerous cross-border structures involving Cyprus, the need to recognise foreign insolvency proceedings in Cyprus is becoming more common. While the framework for recognising cross-border insolvencies originating outside the European Union remains largely untested in Cyprus, case law shows the Cyprus courts' willingness to follow the principles of common law in line with current commercial realities.
The examinership framework – which was introduced to the Companies Law in 2015 – offers an effective mechanism for restructuring financially distressed companies. However, judging from relevant case law, it appears that an application for examinership must be pursued promptly when the financial distress arises and not when the need for a moratorium becomes apparent.
Schemes of arrangement have advantages over other insolvency procedures. For example, they offer a flexible, operational, creative and simple mechanism for restructuring debt and allow companies in financial distress to continue as going concerns. Recent statutory amendments have reduced the required statutory threshold for approving a scheme of arrangement and eliminated the requirement to secure a special majority of 75% in both value and the number of creditors present and voting.