We briefly present a new mechanism, introduced for the first time in the Greek legal system by Law 4469/2017 (Official Government Gazette Α 62/3.5.2017), the «Out‑of-court debt settlement mechanism for businesses and other provisions».
This mechanism aims to protect viable businesses and constitutes an organized out-of-court process for final settlement of debts payable to the private and public sector by Greek businesses, for debts accumulated up to 31 December 2016. The provisions, among others, govern the co-ordination of involved parties, the use of experts and technology, the organization of all stages of the process within reasonable deadlines, as well as the contribution and flexibility of the Greek State as a creditor.
Moreover, involved parties have the right to seek ratification of the debt settlement agreement by the court, if they wish, so that non-contracting creditors would also be bound by the agreement.
In order to ensure optimum organization of the process, the law comes into force three months after its publication in the Official Government Gazette (3.5.2017), except for certain provisions concerning the preparation of the mechanism, which come into force immediately.