Insolvency & Restructuring, AG Erotocritou LLC updates

Cyprus

Contributed by AG Erotocritou LLC
Challenging past transactions in liquidation: fraudulent preference
  • Cyprus
  • 19 February 2021

An effective weapon in a liquidator's and creditor's arsenal to ensure the fair and equal treatment of all creditors of a failing company is the ability to challenge past transactions that sought to favour one creditor to the detriment of others. Transactions entered into by Cyprus companies that are being wound up may be voided if they constitute fraudulent preference and took place during the statutory claw-back period.

Legal framework on voluntary liquidation – an overview
  • Cyprus
  • 11 December 2020

Chapter 113(III) of the Companies Law is the main legal framework which regulates the voluntary liquidation procedure in Cyprus. There are two ways in which voluntary liquidation can be triggered: by members or creditors. This article provides an overview of the legal framework for voluntary liquidation by members and creditors, respectively.

Insolvency and restructuring from a COVID-19 perspective
  • Cyprus
  • 24 July 2020

In response to the COVID-19 crisis, the government introduced a series of humanitarian and financial measures, with the latter covering insolvency and restructuring matters. Although the measures could provide much-needed breathing space for companies, they might not solve problems that existed prior to the crisis.

Examinership: protecting businesses during and after COVID-19 pandemic
  • Cyprus
  • 24 April 2020

Although it is a relatively unknown procedure, examinership may hold the key to the survival of businesses dealing with the financial consequences of the COVID-19 pandemic. Examinership can protect a business from any claims advanced against it in the short term and offer assistance in the form of an insolvency practitioner, who can devise a restructuring plan to safeguard the business's long-term survival.

Winding-up petitions: locus standi for oppressed minority shareholders
  • Cyprus
  • 06 March 2020

The Limassol District Court recently ruled that minority shareholders may file an oppression of minority petition irrespective of whether the underlying company had a positive value for making distributions to shareholders in the event of a winding up. Although this first-instance judgment carries no precedential value, it nevertheless sets the record straight with regard to petitioners' locus standi to promote oppression of minority petitions in the event of a winding up.


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