Financial Restructuring and Bankruptcy Law

Article 137 — Article (137) Disposing of Debtor's Assets During Preliminary Proceedings Period

Part Three: Declaration of Bankruptcy · Chapter Three: Management of the Debtor's Assets and Business

1. The debtor's assets may not be sold during the period of preliminary proceedings extending from the date of submitting the application until a decision is issued thereon. However, the Bankruptcy Court may, upon motion of the Trustee, the debtor or any of the creditors, authorize the sale of perishable items or items whose maintenance requires heavy expenses. It is also permissible to authorize the sale of the debtor's assets to cover the bankruptcy expenses. 2. In the circumstances set forth in Clause (1) of this Article, the sale shall be made in the manner determined by the Bankruptcy Court, and the court shall request the Unit, where the debtor is supervised by the regulatory authority, to provide it with its opinion in this regard.

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