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[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN GREECE]
developed after the declaration of bankruptcy, if they come from a contract or right existing before the bankruptcy was declared). The administration passes to the Bankruptcy Trustee. -The creditors may seek to be paid off in principle only through the Bankruptcy Estate. From the declaration of bankruptcy, any measures such as enforcement of creditor’s claims against the debtor, any civil action against the debtor, any appeal, are banned to commence or it they already took place they are suspended automatically. However, the creditors, whose claims are secured by an asset of the debtor (e.g., a mortgage), they are paid by the liquidation of this specific asset (unless they resign from the security, so they may be able to be satisfied by the whole of the bankruptcy estate, with the rest of the creditors). The aforementioned suspension of measures of enforcement, in principle, does not apply to the secured creditors regarding these specific assets for a period of 9 months from the declaration of bankruptcy. There are some exceptions, such as when the asset is important for the debtor's undertaking if the undertaking or a sector of it is to be sold as a whole. -From the declaration of bankruptcy, the creditors’ claims do not produce interest. -The pending contracts in principle, after the declaration of bankruptcy they are terminated the 60 th day from the declaration of bankruptcy. However, the Bankruptcy Trustee may elect to terminate them before the above date or to continue the pending contracts. If the decision that declares the bankruptcy orders to sell the debtor’s undertaking (or its se ctors) as a whole, the other party of these contracts, within 30 days from the declaration of bankruptcy may impose a reasonable deadline to the Bankruptcy Trustee (which cannot exceed 30 days) in order to elect whether to continue the pending
contracts or not. If the Bankruptcy Trustee does not respond in a timely manner or he refuses to perform, the other party is entitled a) to terminate the contract and b) to make a claim for compensation for non-performance, satisfied as a bankruptcy creditor. -In principle, the declaration of bankruptcy does not affect the right of a creditor to a set off against the debtor, if the prerequisites for a set off were born before the declaration of the bankruptcy. -Anyone who has a right over an asset, which is not owned by the debtor, may ask from the Bankruptcy Trustee its separation from the bankruptcy estate. -Anyone who delivered goods to the debtor, under specific circumstances, may ask the Bankruptcy Trustee to return them. -The Bankruptcy Trustee, under several circumstances, is entitled to revoke acts of the debtor, which took place from the time that the debtor stop making payments and until the declaration of the bankruptcy and they are harmful for the interests of the creditors. Conclusion As a final remark, the present constitutes only a brief, general outline of the proceedings and the protection of the assets and it is not a legal advice. Obviously, it may not cover all the detailed provisions of the law, as the bankruptcy and pre-bankruptcy proceedings are quite complicated, with many exceptions so, many special exceptions and provisions are not covered. For any specific situation, a creditor must seek specific legal advice from a qualified lawyer.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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