Historical Evolution of Secured Creditors' Satisfaction in Georgian Insolvency Law: A Comparative Analysis with International Standards

Abstract

Secured creditors hold a pivotal position in shaping the business sector, given their substantial market influence. To ensure their protection, it is essential that the regulatory norms governing insolvency in the country adhere to internationally recognized standards. In pursuit of this goal, the Law of Georgia "On Rehabilitation and The Collective Satisfaction of Creditors' Claims," enacted on April 1, 2021, is noteworthy. This legislation, diverging significantly from its predecessor, meticulously addresses the role of secured creditors and delineates the criteria for their satisfaction within the framework of Georgian insolvency law. The objective of this paper is to conduct a systematic analysis of the role played by secured creditors and the historical evolution of satisfying their requirements within the framework of Georgian insolvency law. Simultaneously, the study aims to assess how the enacted Georgian insolvency law aligns with the recommendations, principles, and directives of international organizations.