May a secured creditor automatically circumvent the moratorium in a corporate insolvency in Georgia?

No. Even where security exists, it must be checked whether a statutory exception applies or whether relief from the moratorium is required from the court.

What information is needed for an application for relief from the insolvency moratorium in Georgia?

The application should clearly identify the claim, security, affected asset, and requested measure. The alleged prejudice to the creditor should also be substantiated.

What role does the value of security play in a moratorium exception in Georgia?

Changes in value may be relevant to whether the secured position remains adequately protected. The valuation, encumbrances, and importance of the asset to the proceedings should be documented.

Does a granted moratorium exception in Georgia lift protection for all creditors?

No. The exception applies only to the claim and measure specified in the statutory rule or court decision.

Exceptions to the Moratorium in Corporate Insolvency in Georgia

The moratorium in a corporate insolvency in Georgia does not necessarily apply without exception to every claim and every measure. Whether a creditor may act outside the protection or seek relief from it depends on the nature of the claim, any existing security, and a possible court decision.

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First, it is important to distinguish between a statutory exception and an application for relief from the moratorium in an individual case. The creditor should clearly identify the claim, security, affected asset, and intended measure. A secured claim does not automatically mean that individual enforcement or realization is permissible without further review. Depending on the proceedings, the value of the security, any potential prejudice to the creditor, and the importance of the asset to the continuation or realization of the company may be particularly relevant to an application for relief. The insolvent company should consider whether adequate protection of the secured position can be offered and what effect a release would have on the other creditors. The measure in question must not be continued without review until an exception is clearly established or authorized by the court. The application, objections, valuation of the security, and court decision should be fully documented. An exception applies only to the extent specified and does not lift the moratorium for all creditors.

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