The much-anticipated amendment to the Bankruptcy Code was introduced as a proposed bill in Spring 2011, but underwent a series of deliberations before being voted on by the legislature. The new law has now finally been enacted, broadly amending pre-bankruptcy proceedings by abolishing the conciliation procedure and adopting the new recovery procedure. At the last minute, it also introduced the special liquidation procedure.
The Greek Bankruptcy Code currently provides for two restructuring mechanisms: the conciliation procedure and the reorganisation plan. However, the Ministry of Regional Development recently introduced a proposed new bill that transforms the conciliation procedure into a rescue procedure.
Until recently, Greece was one of only a few European jurisdictions to have no insolvency proceedings for non-merchants. However, the need for such protection became apparent. New Law 3,869/2010 sets down debt settlement and debt cancellation procedures for individuals who are not merchants. Such persons may use such procedures if they are permanently unable to meet their financial obligations.
Parliament is shortly due to adopt the United Nations Commission on International Trade Law Model Law on Cross-Border Insolvency. This will make Greece one of several EU member states to have amended national insolvency rules in line with the model rules, thereby creating a set of rules that will complement the provisions of the EU Insolvency Regulation.
Α sea-farming company listed on the Athens Stock Exchange may become the first Greek company successfully to implement the newly adopted pre-bankruptcy procedure, known as a conciliation procedure. The company is looking to restructure its obligations to escape the spectre of insolvency, preserve the integrity of its operations and focus on its fish rather than on seeking to protect itself from its creditors.
Parliament has implemented the new Bankruptcy Code under Law 3588/2007. It is the country's first bankruptcy code and its implementation was necessary to regulate a field in need of redefinition and modernization in order to follow developments in other legal systems and to protect and secure economic growth and public interest.
Including: Bankruptcy Law; Bankruptcy Code.