Cyprus, AG Erotocritou LLC updates

Insolvency & Restructuring

Contributed by AG Erotocritou LLC
Examinership and limits to its application
  • Cyprus
  • 08 March 2019

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 and recent statutory amendments
  • Cyprus
  • 04 January 2019

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.


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