Corporate Recovery & Insolvency

This guide is aimed at providing general information to those interested in gaining a more detailed knowledge as to the laws and procedures surrounding the issues of corporate recovery and insolvency within Cyprus.

There are certain issues which arise when a company finds itself in financial difficulties, one of which being how a creditor may take security over assets. A bona fide creditor may attempt to take one of the following actions to enable them to take security over assets in Cyprus:

1) Mortgage – the property under mortgage is transferred into the creditor's ownership with a right of redemption in the case of default. The property will be worth a similar amount to or equal to the amount of the mortgage.