The start and scope of the insolvency moratorium are governed by the applicable procedural rules and the court’s decision. A stay of enforcement can prevent individual creditors from seizing or realizing assets outside the collective proceedings. This preserves the company’s estate for an orderly rehabilitation or insolvency administration. The moratorium may also suspend or limit new or ongoing proceedings concerning insolvency-related claims. Whether a particular dispute is covered depends on its subject matter, procedural status, and the court order. The protection does not necessarily apply to every claim, security right, or administrative measure. Depending on the claim and security, creditors may consider whether an exception applies or whether they can apply to the court to lift the protection. The company must identify all known enforcement actions and court proceedings and inform the relevant authority of the applicable insolvency decision. Despite the moratorium, payments, dispositions, and new obligations remain subject to insolvency requirements. Orders, proof of service, and decisions on exceptions should be documented clearly for each affected claim.
Moratorium Protecting a Company in Insolvency Proceedings in Georgia
A moratorium protects a company in Georgian insolvency proceedings from certain individual actions by its creditors and consolidates the enforcement of claims in the collective proceedings. The protection may cover enforcement measures and insolvency-related litigation, but it does not extinguish the underlying claims.
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