Financial Restructuring and Bankruptcy Law

Article 232 — Article (232) Withholding Assets or Recovering Possession of Transferred Assets

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

1. If a decision is issued to initiate bankruptcy proceedings for the purchaser before paying the price and the goods are still in the seller's possession, the goods have not yet entered the purchaser's warehouses or the warehouses of its agent authorized to sell them, or where the seller has not transferred the ownership interests or real estate to the purchaser's name, the seller may withhold the aforementioned assets or recover possession of the assets transferred for the purpose of handing them over to the purchaser and terminate the sale contract. 2. The goods may not be recovered if they have lost their nature or if the debtor has disposed of them before their arrival without fraud under the title deed or a bill of lading. 3. In all cases, the trustee or the debtor may, after obtaining the permission from the Bankruptcy Court, request the implementation of the sales contract on the condition that he pays the seller the agreed-upon price. If the trustee does not request so, the seller may assert his right to termination, claim for compensation and take part in the bankruptcy proceedings.

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