Financial Restructuring and Bankruptcy Law

Article 210 — Article (210) Creditors' Recovery of Full Debts

Part Three: Declaration of Bankruptcy · Chapter Eleven: Execution and Effects of Composition

1. After the composition is held invalid or rescinded, the creditors shall recover their full debts, with respect to the insolvent debtor only, and such creditors shall become part of the group of creditors with their full original debts if they have collected nothing of the share allocated to them under the composition. Otherwise, their debts shall be reduced pro rata the value of debts collected by them. 2. The provision stipulated in Clause (1) of this Article shall apply in the event that the debtor is declared insolvent before completing the implementation of the composition terms.

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