Once the moratorium takes effect, the company should record all court, arbitration, and administrative proceedings in a litigation register. For each proceeding, record the competent body, case number, parties, subject matter of the dispute, next hearing date, pending deadlines, and possible enforcement consequences. Then assess each proceeding individually to determine whether it is suspended, may continue, or requires a specific decision. The company should notify the relevant bodies of the commencement of insolvency proceedings and the moratorium in the required form, and retain proof of notification. A stay of proceedings does not automatically extinguish the underlying claim or undo procedural effects that have already occurred. Creditors must therefore determine whether to file their claim in the insolvency proceedings or continue pursuing it in a permitted proceeding. Court deadlines should be treated as suspended only if this follows from the applicable rules or a specific decision. A litigation stay concerns legal proceedings and must be distinguished from the separate suspension of individual enforcement measures.
Moratorium-related suspension of litigation involving an insolvent company in Georgia
A moratorium involving an insolvent company in Georgia may suspend or restrict pending or new legal proceedings concerning insolvency-related claims. Whether a particular proceeding is covered depends on the subject matter of the dispute, the stage of the proceedings, and the scope of the relevant order.
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