The Cypriot corporate insolvency framework has undergone an
overhaul over the past years. The insolvency procedures summarised
below are generally available to companies incorporated in Cyprus,
except for certain regulated entities, such as credit institutions
and insurance companies, to which specific insolvency frameworks
apply.
Company arrangements and reconstructions
Arrangements and reconstructions are generally used to achieve a
compromise or arrangement between a company and its creditors, or
between a company and its members or any class of them. The term
'arrangement' refers to any reorganisation of the share
capital of a company by the consolidation of different classes of
shares, or by the division of shares into shares of different
classes or a combination of both methods.