GREECE Law and Practice Contributed by: Betty Smyrniou, Bahas, Gramatidis & Partners
2.9.7 Imposition of Moratoria in Connection With Insolvency Proceedings Once bankruptcy is declared, all individual measures of the bankruptcy creditors against the debtor for the satisfaction or discharge of their bankruptcy claims will be automatically suspended. This includes: • the commencement or continuation of enforce - ment; • the bringing or adjudication of legal remedies; and • the issuing of administrative acts, or their enforce - ment on elements of the bankrupt’s assets, includ - ing administrative enforcement measures by the State and social security institutions, as well as measures to secure the debt pursuant to legisla - tion. Enforcement may also be suspended if an application is made before filing an agreement for the debtor’s reorganisation. • the exercise of counterclaims; • the continuation of proceedings; The initial suspension period can last up to four months, with a potential extension of up to six months. The filing of a recovery agreement triggers an auto - matic stay that lasts for four months, which may be extended. The total duration of the moratorium under the new law cannot exceed 12 months. Enforcement may also be suspended in the event of an application for bankruptcy if the application pro - vides for a going-concern sale. Otherwise, the appli - cation for ‒ or declaration of ‒ bankruptcy will not sus - Compulsory administration is a legal process that allows creditors to manage a debtor’s property to sat - isfy their debts. The process does not involve freez - ing or auctioning the property, and the conditions for compulsory administration are as follows: • the creditor must have a monetary claim against the debtor; pend enforcement by secured creditors. 2.9.8 Liquidation of Domestic Lessees
• the creditor must have an enforceable title to the claim; • the creditor must have served the debtor with an order for execution; • a decision of a single-member court of first instance of the district where the debtor’s property or place of business is located must be issued; and • the decision that imposes the receivership must be served on the debtor. 2.9.9 Ipso Facto Defaults During a lessee’s insolvency proceedings, ipso facto defaults are acknowledged, permitting repossession of the aircraft. 2.9.10 Impact of Domestic Lessees’ Winding-Up In the case of an insolvency situation that would usu - ally constitute an event of default under the lease agreement and/or when the domestic lessee is wound up by a court or administration proceeding, the lessor would be entitled to request the return of the aircraft. In a liquidation of the lessee or insolvency proceed - ings, the aircraft may not be attached by unsecured creditors of the lessee. The lessee only has a right to possession of the aircraft pursuant to the lease agree - ment, and its rights are subject to the proprietary and security interests of the lessor and its secured credi - tors. Any outstanding lease rental payments that were due to the lessor when the lessee was being wound up would be treated as unsecured, along with the other ordinary creditors of an insolvent lessee. If the lease agreement continues, claims for lease rentals incurred following the formal opening of insol - vency proceedings constitute preferred claims against the insolvency estate. The lease security deposit would be available to the lessor to cover outstanding claims. Maintenance reserves would usually remain with the lessor.
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