Insolvency proceedings are initiated by the filing of a petition for insolvency by the debtor or a creditor with a competent commercial court of first instance. A creditor may file an insolvency petition before an insolvency office following a failed debt recovery procedure relating to the insolvency, or certain conditions laid down in Article 177 of the EBL are met.
Restructuring proceedings are initiated as follows:
A debtor who cannot pay or is at risk of not being able to pay its debts on time may file a petition for composition (concordato) to free itself from possible bankruptcy by submitting to the Commercial Court, at the time of the petition, certain documents to prove its insolvency and the prospects of success of the composition project.
Restructuring by settlement may be initiated by an application by the distressed trader to a competent commercial court of first instance together with a pre-negotiated restructuring project which should have been approved beforehand by a simple majority of the number of creditors concerned by the project and whose claims represent at least two thirds of the debts of the company concerned by the restructuring.