Under Article 243(1) of the Cyprus Companies Law the Court may at any time after the issuance of a liquidation order, at the request of either the liquidator or the official receiver (insolvency department) or any creditor or contributory, and after proof to the satisfaction of the Court that any liquidation proceedings should be stayed or terminated, it may issue an order staying or terminating the proceedings, either in completely or for a limited period of time with such terms and conditions as the Court deems appropriate.
Upon such a request, the Court may prior to the issuance of an order request from the official receiver to submit a report on any facts or issues which, in its opinion, are relevant to the request. A copy of the order issued pursuant to the provisions of this Article shall be delivered immediately by the company or, as otherwise specified, to the registrar of companies and to the official receiver, who shall enter it in the official records kept with respect to the company.
Under this power the court may discharge the liquidator, and allow the directors to resume the management of the company as though it had never been ordered to be wound up. A winding up has been stayed in this way at the wish of the contributories when all the creditors of the company had been paid in full, or when adequate provision had been made for the few who had not been paid and whose claims were not admitted by the company, and also when all the creditors had agreed to an arrangement with the company for the satisfaction of their claims.
The court in its discretion will always require to be satisfied that the proposal is bona fide for the benefitof the creditors and not detrimental to the public.
For more information regarding court liquidation proceedings and applications to stay and or terminate liquidation orders contact Phoebus, Christos Clerides & Associates LLC at firstname.lastname@example.org or email@example.com