We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
10 May 2019
As a result of the numerous cross-border structures involving Cyprus, the need to recognise foreign insolvency proceedings in Cyprus is becoming more common.
Insolvency proceedings initiated in the European Union can be recognised in Cyprus through the EU Recast Insolvency Regulation (2015/848).
In the absence of legislative framework providing for the recognition of foreign insolvency proceedings in Cyprus, such recognition may be achieved under the principles of common law.
The power to recognise foreign insolvency proceedings under common law was recognised in the first-instance case of Eitan Erez v Dr Borris Bannai (Appl 1535/2011, 1 February 2012). However, in the said case, by applying the principles of common law, the court refused to recognise insolvency proceedings that had been initiated abroad because:
While the framework for recognising cross-border insolvencies originating outside the European Union remains largely untested in Cyprus, the aforementioned case shows the Cyprus courts' willingness to follow the principles of common law in line with current commercial realities.
For further information on this topic please contact Andreas Erotocritou, Alexis Erotocritou or Antreas Koualis at AG Erotocritou LLC by telephone (+357 25 370 101) or email (email@example.com, firstname.lastname@example.org or email@example.com). The AG Erotocritou LLC website can be accessed at www.erotocritou.com.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.