The Corona Crisis leads worldwide to critical situations for companies.
In light of this, Digitorney has asked lawyers from various countries specialized in restructuring law for recommendations on what needs to be done and which solutions are at hand to weather the Corona Crisis.
This part of our series focuses on Greece.
1) When does a company need to file for insolvency in Greece?
As per article 3 par.1 and 2 of Greek Law 3588/2007 (Bankruptcy Code) «a company which is unable to fulfil its overdue financial obligations in a general and permanent manner (cessation of payments) is declared bankrupt. In addition, an imminent failure for a company to fulfil its financial obligations is a ground for declaring bankruptcy, at its request». MORE
2) What liability risks exist for the management in Greece in a corporate crisis?
One can think of contract liability risk and/or liability risk related to governments measures. In relation to contract liability, companies need to go over their existing contracts for interpreting force majeure and/ or hardship clauses and reexamine the legal position in the COVID-19 era. MORE
3) Is there any state aid available for companies in Greece due to the Corona crisis?
The Greek Government has opted for the adoption of emergency measures to mitigate the impact of the pandemic on businesses. A prerequisite for the inclusion of companies in the protection framework is the maintenance of the jobs of all their employees. MORE
4) What immediate measures should companies from Greece take if it is affected by the Corona crisis?
Due to the rise of COVID-19 pandemic, companies would be forced to implement emergency measures for the purpose of confronting the current situation. Some of these measures may involve the implementation of health and safety measures in the workplace, the strengthening of companies digital infrastructure, as well as the cancellation of all their professional activities (travel, conferences, meetings), as an attempt to reduce the expansion of the virus. MORE
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