Changes To Insolvency Procedure

A number of changes have been made to insolvency procedure to remove various discrepancies and controversial practices:

• courts must now notify the commercial registry of any application to start insolvency proceedings by the next business day at the latest, so that all creditors, partners and contractors can take steps to protect their interests
• courts must suspend insolvency proceedings begun by the company where a creditor has already filed an insolvency application
• court have discretion in limited circumstances to allow the sale of assets to cover the costs and expenses of the insolvency before bankruptcy is declared
• claims secured with a third party are no longer suspended when insolvency proceedings are begun against the debtor