Greece: Financial Restructuring

Greek courts are increasingly ruling that real estate acquisitions at auction by REO companies affiliated with loan servicers constitute an unlawful circumvention of statutory prohibitions. Recent judgments from the Western Macedonia Court of Appeal and Athens Court of First Instance have found that these arrangements allow servicers to maintain economic control while formally separating legal entities, depriving debtors of fair settlement opportunities and enabling below-market acquisitions.

Much has been written about the new Out-of-Court Debt Settlement Mechanism introduced by Law 4738/2020.