How To Choose The Restructuring That Suits You

How To Choose The Restructuring That Suits You

By | August 28, 2020 |

Considering that this regulated restructuring procedure was non-existent in Cyprus’ insolvency law framework until 2015, it’s not a surprise that both entrepreneurs and consultants had initially viewed this with skepticism or even general disapproval. It is indeed easier for someone to use and advise on the procedures that is already familiar with. However, such procedures are not enough anymore in facilitating resilience to the unprecedented financial hardships and constraints that businesses are faced with in times of global recessions.

Examinership and the Coordinated Scheme are more integrated, preventive restructuring tools that businesses and consultants shall learn to use to their advantage. These schemes are here to stay and shall be further enhanced within the following year to meet Cyprus’ obligation for harmonization with EC Directive 1023/2019 on preventive restructuring frameworks and second chance, which shall be completed by 21st July 2021. The target is to increase the use of preventive restructuring tools to reduce business failures which in turn will have a positive impact in reducing unemployment and improving financial stability and social cohesion.

Andrie Kypridemou, Manager, Corporate Recovery Services

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