First, it must be determined whether Georgian rehabilitation and insolvency law applies to the debtor concerned. Companies, individual entrepreneurs, and specially regulated businesses may be classified differently. The legal form alone is therefore not sufficient to assess access to proceedings. In addition, the company must be experiencing a crisis that meets the statutory requirements of the proceedings sought. A distinction must be made between inability to pay that has already arisen and a foreseeable threat to future ability to pay. The financial situation must be presented clearly on the basis of reliable company data and documents. This includes a consistent account of current obligations, available funds, and expected payment developments. The information must show the basis for concluding that a crisis exists or is impending. Only a joint assessment of applicability, the crisis situation, and the evidence can establish whether rehabilitation or insolvency proceedings are generally accessible. Formal commencement of proceedings and its legal effects are separate procedural steps.
Access to corporate rehabilitation and insolvency proceedings
Access to rehabilitation or insolvency proceedings in Georgia depends on the legal status of the business debtor and a financial crisis that is relevant under the law. An insolvency application requires reliable information and evidence regarding the company’s current and foreseeable ability to pay.
Tip
Access to proceedings requires three separate assessments: whether the law applies to the debtor, whether there is a crisis relevant under the law, and whether reliable evidence is available. Legal form or a liquidity shortage alone is not enough. Even if access is generally possible, this does not mean that the court has opened proceedings.
VivAVia can make mistakes. Check important information.