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[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN CYPRUS]
The scheme must be approved by the members and by the creditors of the company (by a single majority in value of each class of members or creditors voting for the arrangement). Following approval of the scheme as stated above, the scheme is brought before the court which decides whether it is fair and in the circumstances proper to be sanctioned. Generally, for a scheme to be approved, it must be shown to the satisfaction of the court that with the implementation of the scheme, the members and creditors of the company will not be placed in a worse position than that in which they would be, had the company been liquidated. Opposing members or creditors have the right to be heard at the court. Once the court sanctions the scheme, it becomes binding on all the company’s members and creditors. LLPO Law Firm Contacts: George Polemidiotis Partner - Advocate - Insolvency Practitioner gcp@llpolawfirm.com Kypros Louca Senior Associate - Advocate - Insolvency Practitioner kal@llpolawfirm.com
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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