Under the new Law, both individuals and corporate entities can be declared insolvent. It provides for separate insolvency proceedings designed to address different debtor categories based on the size of the liabilities involved. Large scale insolvencies will be conducted under the traditional insolvency process, ending either in the sale of the insolvent business in whole or in part in case of an integrated operative unit (“going concern liquidation”), or the liquidation of the insolvent debtor’s assets individual using the e-auction mechanism (“piecemeal liquidation”). Declarations of insolvency will be determined by the court and the ordinary insolvency process terminates five years after the relevant court…
Insolvency Guardian
Insolvency Services & Bankruptcy Advice
