Financial Restructuring and Bankruptcy Law

Article 221 — Article (221) Involvement of Creditor in the Proceedings

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

1. If a decision is issued to imitate the proceedings for all co-principal debtors at once, the creditor may get involved in all proceedings for each co-debtor with all of its debt until he recovers the debt in full, including the principal debt, interest and expenses. 2. If the total amount collected by a creditor exceeds the value of its debt and its associated rights, the excess shall be refunded to the assets of the debtor who is guaranteed by third parties according to the order of their obligations in the debt. 3. If the arrangement referred to in this Article is not fulfilled, the excess amount shall be refunded to the debtors' assets, which paid more than their share in respect of the debt.

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