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Out-of-court compromise mechanism for indebted companies to be launched in July

Out-of-court compromise mechanism for indebted companies to be launched in July

"A legislation of an out-of-court mechanism we bring to Parliament does not guarantee a rescheduling of debts for each company as no such rescheduling cannot be imposed against the will of the majority of creditors, but sets the preconditions offering fundamental opportunities of understanding between indebted companies and creditors," Greek Economy Minister Dimitris Papadimitriou said on Monday (10/04/2017).

Speaking to reporters, during a news conference to present the draft bill -expected to be voted in Parliament by late April- Papadimitriou said the new legislation was expected to cover around 400,000 enterprises with large debts. He stressed that a plan for debt rescheduling will not focus only on the real data of a company's viability but also on the principle of avoiding a worsening of the positions of all parties, ensuring that a compromise agreement will be a win-win situation for all parties involved.

The Greek minister said that a Special Secretariat of Private Debt Management will launch an electronic platform in July accepting applications for inclusion in the provisions of an out-of-court compromise framework. He said that the mechanism will commit both minority and non-participating creditors if an agreement was ratified with a court decision.

Source: ana-mpa