Bankruptcy and Business Consolidation in Greece: An Exploratory Approach

Abstract

This paper concerns the consolidation process after the amendments to Law 4446/2016. Specifically, the new consolidation process is presented, aiming at rescuing companies in economic crisis. In times of severe economic crisis, as many businesses are overwhelmed by enormous financial difficulties, it was necessary to change and modernize the legislative framework that has been made to facilitate the rescue of viable businesses.

An attempt is made by the Legislator to restore the debtor to the market and its business. The consolidation process could succeed with a collective and honest effort by all parties involved. With these modifications, an attempt was made to address the disadvantages of the process and in general to strengthen the consolidation and prevention of operational bankruptcy, so that it becomes a modern and effective tool for dealing with commercial insolvency for sustainable businesses.

In the same direction and after studying and analyzing the case of the consolidation and rescue of Marinopoulos company, some proposals are made for the existing legislative framework. Our main goal should be to attract investments, so that investors and investment funds could give the opportunity to acquire an existing business that needs liquidity. The interests and claims of the creditors are better secured, since as a rule the creditors will be satisfied more by a functioning company than they would be by the forced sale of its assets. Creating an effective bankruptcy system that will faction as a tool for business recovery would open up a new market.