Two criteria for settlement of corporate debts
Pretax profits and the total property assets of a debtor are the two main criteria that will determine whether enterprises with debts of 20,000-50,000 euros can be included in the automatic process of the extrajudicial mechanism for the settlement of corporate debts, according to an agreement between the Economy Ministry and the country’s creditors.
The pretax earnings criterion will rely on the results of the last financial year before the application for settlement, or the average of the two best years out of the last three before the application. Sources say the option that is most beneficial to the debtor will be used.
