Financial Restructuring and Bankruptcy Law

Article 212 — Article (212) Recovery of Assets

Part Four: Common Provisions · Chapter One: Effects of Decision to Initiate the Proceedings

1. The owner of the assets in the possession of the debtor may, after obtaining permission from the Bankruptcy Court, recover those assets if he proves that he will sustain serious damage as a result of not recovering them, disproportionate to the damage that will befall the debtor and other creditors as a result of the loss thereof. 2. The serious damage referred to in Clause (1) of this Article shall be deemed sustained in either of the following cases: a. If the value of the assets is expected to decline significantly. b. If the assets are not necessary to implement the preventive settlement proposal, the plan or the sale of the insolvent debtor's assets as an "existing and ongoing activity".

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