The assessment begins by establishing the debtor’s exact identity, legal form, and registration status. It must then be determined whether special supervision, resolution, or liquidation rules apply to the debtor’s activities and exclude or modify the general corporate insolvency law. Merely describing the debtor as a business, company, or individual entrepreneur is not enough to make this determination. Current registry documents, authorizations, details of the regulated activity, and the legal basis for any possible special procedure are required. An exclusion does not mean that debts are extinguished or that creditors no longer have rights. Instead, a different procedure, a different competent authority, or a different order of creditor payments may apply. If only a specific area of activity is specially regulated, it must be determined whether the exception applies to the debtor as a whole or only to particular assets and obligations. Only after this distinction has been made can it be determined which procedure can actually be commenced.
Exceptions to insolvency proceedings for business debtors in Georgia
Not every business debtor in Georgia is subject without limitation to the general rehabilitation and insolvency proceedings. An exclusion from insolvency proceedings may arise from the debtor’s legal status, a specially regulated activity, or a priority special procedure.
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