ALFG is pleased for making a significant contribution in the reformation process of the insolvency system.
On April 1st, 2021, the Law of Georgia on Rehabilitation and the Collective Satisfaction of Creditors’ Claims came into force. This law is focused on the existing challenges and creates new possibilities for the enterprises to preserve organizational vitality during financial hardships, which is also an important tool for ensuring economic stability.
The Association of Law Firms of Georgia (ALFG) feels happy for making a significant contribution in the reformation process of the insolvency system. Since the beginning of the reform, the Association was actively participating in the process with the help of many of its members, along with the international and local experts, state departments and donor organizations.
Since 2016, the Association of Law Firms of Georgia has been supporting the professional empowerment of the lawyers working in the field of insolvency and of the individuals interested in this field. Hence, ALFG has organized a number of activities, including the successful realization of a project regarding the insolvency managers’ professional development in 2017. In the frames of this project, twenty lawyers participated in a specially prepared professional training course, intended for the work of the insolvency practitioners.
In the years 2016-2017, ALFG has organized various public discussions, aiming to mobilize the private sector and involve it in the private-public discussions, so as to facilitate the beginning of insolvency system reformation. The discussions also served to raise awareness about the flaws in the insolvency system; an action plan of insolvency legislation reformation was drafted to be presented to the public departments.
On November 2nd, 2018, ALFG along with its several member individuals and other actors, became a founding member of Business Rehabilitation and Insolvency Practitioners Association (BRIPA). The idea of founding this association was to support the reformation of the insolvency system, empower the profession of the insolvency practitioners and rehabilitate the businesses that are experiencing crisis.
The Association of Law Firms of Georgia supports the enforcement of the law and hopes that the new law will be an effective means to control the insolvency system, which will help the businesses that are experiencing crisis to undergo a business-survival-oriented re-structurization.
