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Cross-border insolvency

Recognition of foreign proceedings

Under what circumstances will the courts in your jurisdiction recognise the validity of foreign insolvency proceedings?

EU Regulation 848/2015 (for proceedings initiated after June 26 2017) provides for the recognition of proceedings initiated in another EU member state, provided that they fulfil the regulation’s requirements. Court decisions of EU member states that do not fall under the ambit of the above regulation may be recognised according to EU Regulation 1215/2012.

Law 3858/2010, adopting the 1997 United Nations Commission on International Trade Law Model Law on Cross-Border Insolvency, applies with regard to non-EU insolvency proceedings. Any other foreign decision may be recognised according to the Code on Civil Procedure following a relevant court decision to this effect. 

Winding up foreign companies

What is the extent of the courts’ powers to order the winding up of foreign companies doing business in your jurisdiction?

The insolvency procedures provided under Greek law may be followed by a foreign company, provided that its centre of main interest is in Greece.

Centre of main interests

How is the centre of main interests determined in your jurisdiction?

In line with EU regulation on insolvency proceedings, the Bankruptcy Code provides that the centre of main interest of a debtor is the place where the debtor usually exercises the administration of its interests and is therefore identifiable by third parties. For legal persons, it is presumed, until the opposite is proven, that its centre of main interest is the place of its registered seat.

Cross-border cooperation

What is the general approach of the courts in your jurisdiction to cooperating with foreign courts in managing cross-border insolvencies?

EU Regulation 848/2015 provide for cooperation with foreign courts and bankruptcy administrators in case of foreign insolvency proceedings (especially in case of insolvency proceedings involving groups of companies).

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