Cyprus’ largest aviation company was put into voluntary liquidation following a declaration of insolvency. Our team provided legal advice to the Liquidators on several issues arising from the liquidation process, including the government’s and the employees’ claims against the company and their categorization pursuant to the list of preferential creditors in Cyprus Companies Law. The total value of those claims exceeded €30.000.000.
After the Liquidators realized the majority of assets, the outstanding claims had to be dealt with in order to enable the distribution of dividends. Our team advised on the preparation of a scheme of arrangement.
Following a relevant Court application, the scheme of arrangement was approved by the Court, leading to the determination of all claims and the dismissal of all legal actions against the company. This case set a precedent for future insolvency proceedings, guiding liquidators in dealing with claims against companies that are unable to pay their debts.