Opening Corporate Rehabilitation or Insolvency Proceedings in Georgia

Depending on the type of proceedings, the application may be filed by the company as debtor or by a creditor entitled to apply. It must clearly state the asserted grounds for opening proceedings, the applicant’s standing, and the requested type of proceedings. Supporting documents must provide verifiable evidence of the company’s financial distress and the applicant’s standing. In a rehabilitation application, the documents must show that this type of proceeding is being requested. Once the application has been received, the court first reviews whether the formal and statutory requirements for further consideration have been met. It examines admissibility, the applicant’s standing, and the asserted grounds for opening proceedings. Incomplete or inconsistent information may hinder the court’s assessment of the application. During the preliminary review, the court may order interim measures to protect the company’s assets. Filing an application and the court’s preliminary review therefore precede the opening of proceedings and must be distinguished from the effects that arise later once proceedings have been opened.