The EU member state is amending part of its
para-insolvency framework but the country’s
economic situation may prove an obstacle to its successful
In late 2014, Greece adopted an out-of-court workout (OCW)
regime for micro-enterprises and self-employed professionals.
In spite of its good intentions, the scheme was rarely deployed
and is now being replaced. Inevitably, the proposed new law is
also destined to fail on the same grounds as the outgoing
regime, not due to its lack of sophistication but because
workouts are not instigated by the law. Instead, they only take
place when there is available financing and an
investor-friendly tax regime, which favours business workouts.
Unfortunately, Greece lacks both. Unless there is a drastic
improvement on these two fronts, the (inter)national legislator
will soon be drafting a new reform. If companies are to have
any chance for turnaround, the focus should thus be on