Newsletter IV-V: Initiatives and legislative amendments for promoting business activities in Georgia
June 2017Legal news
Amendments to the Law of Georgia on Insolvency Proceedings
Amendments have been made to the Law of Georgia on Insolvency Proceedings. In accordance with the revised version of the Law:
- The list of creditors, entitled to submit to the court the application to commence insolvency proceedings against the debtor, has been extended. Pursuant the amendments, any creditor, upon justification of necessity, may request opening of insolvency proceedings;
- The insolvency application allows the debtor to request the opening of bankruptcy, as well as rehabilitation proceedings;
- Creditors are granted the right to request information and documentation related to an insolvency proceeding;
- The period during which the company is restricted from the actions, which could be detrimental to the creditors, has been extended from 6 months to 1 year.