Should states ever protect insolvent companies or intervene in insolvency proceedings and what is the line that a state shouldn’t cross in its intervention were some of the questions discussed.
Tsvetelina Georgieva, Associate at Dimitrov, Petrov & Co., was among the speakers in a webinar on state intervention in insolvent companies, held on 10 November 2020 - the Insolvency Commission Day from AIJA Commissions Month.
The first session, with participants from Brazil, Japan, Austria, Switzerland, Ireland, and Bulgaria, was conceived as a debate between groups of panelists arguing for and against states protecting insolvent companies or intervening in insolvency proceedings. Should states ever protect insolvent companies or intervene in insolvency proceedings, what is the line that a state shouldn’t cross in its intervention and are these proceedings successful for national/foreign creditors were some of the questions discussed.
Tsvetelina, who has been an active member of the International Association of Young Lawyers - AIJA for 2 years, supported with examples from her practice the view that state intervention could be of help only if it is timely, balanced and takes into account the interests of all participants in the proceedings. As a key takeaway from the discussion, she pointed out that it is crucial for creditors not only to be familiar with the current legislation and financial status of the debtor but also to be able to react adequately to any changes and to protect their interests, especially in the current insecure and dynamic situation.
Tsvetelina Georgieva is specializing in litigation, insolvency, security and enforcement procedures. You can contact Tsvetelina directly at tsvetelina.georgieva@dpc.bg
