Concordat by Surrender of Assets
Bankruptcy and Concordat
Prepared by: Constantinople
Enforcement Proceedings and Legal Remedies
A concordat by surrender of assets is a special procedure granting creditors powers to dispose of or transfer specified debtor assets (Articles 309/a et seq. of the Enforcement and Bankruptcy Law). The assets to be transferred, who will manage them, and how proceeds will be distributed must be clarified. A decision should not be based solely on the proposal's heading.
When Is a Concordat by Surrender of Assets Considered?
A concordat by surrender of assets may involve arrangements allowing creditors to dispose of specified assets or transferring assets to a third party. Liquidation bodies, supervision, and creditors' rights must be examined with the special statutory framework. Explanations of maturity extensions or reductions used in an ordinary concordat do not fully describe this structure.
For example, transfer of a business as a whole and sale of its assets individually may have different consequences for timing, value, and expenses. The decisions creditors may participate in and information they will receive must be traced in the plan's annexes. The debtor's valuation statement alone should not be relied on without an audit report, valuation, and current registry records.
Examine the Remedy and the Stage of the File Together
The real value, existing encumbrances, saleability, and liquidation costs of assets surrendered are important. The claim's coverage under the plan and proposed consequences for any outstanding balance must be read clearly. A property listed among the assets that does not legally belong to the debtor or is encumbered by security rights may change collection expectations.
Documents to Prepare for the Initial Review
- The concordat plan and asset list
- Valuation, security, and encumbrance records
- Distribution and authority provisions concerning creditors
- Meeting and confirmation decisions
Before deciding, compare the plan's asset list, valuations, and distribution conditions together.
Legal Grounds and Official Sources
The Enforcement and Bankruptcy Law and relevant special legislation; the official sources below are considered for practice. Specific time limits, jurisdiction, expenses, and procedural requirements must be determined separately by reference to the file's dates.