Georgia’s insolvency system is facing significant changes today. The new draft law is ready to be enforced and will completely change the system.
The current Insolvency Law of 2007 is appreciated as primarily oriented towards a rapid liquidation of insolvent corporate and private entrepreneurs’ businesses with the subsequent distribution of remaining assets amongst the creditors. The number of insolvency cases dealt with by the local courts is fairly limited, most probably due to insufficient assets to cover the costs of the insolvency procedure. The law left many aspects of insolvency procedures either unclear or unregulated.