Before filing its own application, the company must determine whether continuing operations through corporate rehabilitation appears realistic or whether it should apply for insolvency proceedings to realise assets and satisfy creditors in an orderly manner. The competent corporate bodies must validly resolve to or approve the application and its objective. The application should be based on up-to-date information about solvency, future liquidity, assets, liabilities, creditors, security interests, and ongoing court or enforcement proceedings. The documents should also cover material contracts, employment relationships, and permits required for the business. If rehabilitation is sought, the assumptions concerning continued operations, financing, and future payments to creditors must be substantiated. The application must not omit assets, related parties, or disputed claims without explanation. The management, accounting records, and submitted schedules must use the same reporting dates and amounts. The technical filing with the competent authority must be distinguished from the substantive decision to make the application.
A Company's Own Application for Rehabilitation or Insolvency in Georgia
A company in Georgia can itself apply to open rehabilitation or insolvency proceedings if the statutory requirements for the chosen procedure are met. The debtor’s application must be based on a duly adopted corporate decision and provide a complete, clear account of the company’s financial position.
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