Conclusion of Winding-up Proceedings

Provision is made for the manner in which the winding-up proceedings may conclude in Art. 103 a of the Act on Financial Undertakings, No. 161/2002. The main distinction made in the Act is whether the moratorium and winding-up proceedings conclude with the possibility of payment of all recognised claims against the financial undertaking in question or not.

If all recognised claims can be paid, the winding-up proceedings conclude with the financial undertaking being returned to its owners or with payment made for the holding.

If it is however not possible to pay all recognised claims the Winding-up Board, when it deems the time to be right and all legal requirements are satisfied, can seek composition with creditors. If composition cannot be achieved or if the premises for this cannot possibly exist at later stages, a petition shall be made to the District Court that the estate of the financial undertaking be placed in final liquidation as provided for in detail in the rules of the fifth paragraph of Art. 103 a of the Act on Financial Undertakings.