Effects Of The Concordatum Period On Pledgees

Pursuant to Article 285 of the Enforcement and Bankruptcy Law (EBL), a debtor who is unable to pay their debts on time or is at risk of default may request a concordatum. During the period granted to the debtor upon such request, no enforcement proceedings may be initiated, and ongoing proceedings are suspended, in accordance with Article 294/1 of the EBL.

However, if the related receivable is secured by a pledge, pursuant to Article 295/1 of the EBL, a proceeding may be initiated and continued through the monetisation of the pledged property. Although such proceedings may be carried out during the concordatum period, no protective measures may be taken against the pledged property, and the sale of the asset is prohibited.