Financial Restructuring and Bankruptcy Law

Article 70 — Article (70) Voting on Preventive Settlement Proposal

Part One: Preventive Settlement · Chapter Two: Effect of Issuance of Decision to Initiate Preventive Settlement Proceedings

1. The right to vote on the preventive settlement proposal shall be limited to ordinary creditors whose debts are finally approved. The Bankruptcy Court may authorize creditors whose debts are temporarily approved to vote on the proposal, and it shall determine the conditions and limits for granting this authorization. 2. The Bankruptcy Court may authorize the secured creditor to vote on the proposal with the value of its secured debt, without the same affecting the security right, if the proposal affects its secured rights. Creditors whose debts are guaranteed may not vote in other circumstances unless they abandon these guarantees in advance, and the abandonment shall be recorded in the minutes of the meeting. If the proposal is invalidated, the guarantee covered abandoned shall be re-made effective. 3. The Bankruptcy Court shall decide on any conflict regarding the right to vote and who chairs the meeting, within ten (10) days from the date of submitting a motion to the Bankruptcy Department.

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