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[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN GREECE]
maintenance of the current jobs in the company etc. Moreover, for serious reason the court can also decide to apply the protection to the guarantors of the debtor or other co-debtors as well. The court may also appoint a Special Receiver with the power to undertake the management of the debtor partially or totally (even without the consent of the debtor). The aforementioned protection may bind all or several of the creditors (depending on the court's decision), including also the State (for taxes etc.). It must be noted that any action on behalf of any person who is bound by the provisional measures (e.g. a creditor), that is in breach of the provisional measures granted, is void. Furthermore, the provisional measures do not apply regarding some specific types of claims such as the termination of a lease agreement, if the debtor owes at least six-month rents, the financial security agreements of the L. 3301/2004 or when an “important social reason” occur (e.g. to pay to a creditor an amount which is essential for his and his family survival). The claims of the employees for their wages are not, in principle, affected by the measures, unless the court decides that there is an important reason.
2.2 The protection at the time that the rehabilitation agreement has been concluded and submitted to the Court 2.2.1 The Procedure At the time that the rehabilitation agreement has been submitted to the court for validation, there are two types of provisional protection. First of all, there is a provisional protection granted to the debtor automatically (i.e. the protection is granted directly by the law and no court decision is required) and it is limited to the measures that are listed on article 50 of the law 4738/2020 (see below par . 2.2.2). Secondly, an additional, parallel protection (i.e. additional to the measures that apply automatically) may be granted as an injunction with a court decision (and a provisional order), exactly as the above mentioned protection granted before the conclusion of the rehabilitation agreement (see above paras 2.1.1- 2.1.2) The purpose of the provisional protection at this stage is on the one hand to keep the business of the debtor running and on the other hand to maintain its property. 2.2.2 The Type of the Protection The automatic provisional protection granted at this stage, according to article 50 of the law 4738/2020, includes the suspension of any enforcement of creditor’s claims against the debtor (e.g. by seizure of assets), the ban of proceeding with injunction against the debtor and the
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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