Financial Restructuring and Bankruptcy Law — articles 101–200

The debtor and every creditor, even if its name is not included in the list of debts, may file a grievance with the Bankruptcy Department against the debts included in the list within ten (10) days from the date of annou…

After the expiry of the period stipulated in Article (101) of this Law, the Bankruptcy Court shall approve a final list of undisputed debts, and the Trustee shall mark the statement accompanying the documents for these d…

1. The Bankruptcy Court may, before deciding on the grievance or on the challenge filed against the judgment issued therein, decide to approve the debt in an amount it estimates unless a criminal case has been filed in i…

If a dispute arises in relation to debt guarantees, it shall be temporarily admitted as an ordinary debt.

The share of temporarily approved debt shall be retained from the proceeds of the sale of the debtor's property. When any distribution is made to creditors in accordance with the provisions of this Law, and if the Bankru…

1. A creditor, who does not submit documents supporting its debt within the dates stipulated in Article (95.1.B) of this Law, may submit an application to the Trustee to admit the same and engage in the proceedings. The …

1. If the Bankruptcy Court issues a decision to initiate proceedings, the debtor, under the supervision of the Trustee, shall develop a plan. The debtor may seek assistance from the Unit, where the debtor is supervised b…

The plan shall include the following attachments: 1. The debtor's plan to conduct its activity. 2. A list of the names of known creditors and debtors, their electronic and physical addresses, their phone numbers, the val…

The Trustee shall notify the Bankruptcy Department and the Unit, where the debtor is supervised by the regulatory authority, on a monthly basis of the progress of developing the plan.

The debtor shall, within the time stipulated in Clause (1) of Article (107) of this Law, notify the Trustee, the Unit, where the debtor is supervised by the regulatory authority, and the representative of the Creditors' …

A plan may be developed on the basis of the debtor giving up all or any of its assets in consideration of settling all or any of its debts. It is permissible to pay all or part of the debtor's debts in kind or in cash, c…

Notwithstanding the provisions of Articles (113) and (114) of this Law, the provisions set forth in Chapter I of this Law regarding preventive settlement shall apply to the approval of the plan, to the grievance against …

1. The debtor shall call the creditors to approve the plan pursuant to a notice containing the date and place of the meeting, in accordance with the procedures contained in the plan. The meeting shall be held not later t…

1. The Trustee shall, within a maximum period of (10) ten days from the date of the required majority's approval or rejection of the plan, notify the Bankruptcy Department and the Unit, where if the debtor is supervised …

The Trustee shall supervise the implementation of the plan throughout the plan's validity term and until its implementation is completed. If the debtor is supervised by the regulatory authority, the Unit shall coordinate…

When supervising the implementation of the plan, the Trustee shall take the following measures: 1. Monitor the progress of the plan and notify the Bankruptcy Department and the Unit, where the debtor is supervised by the…

1. The debtor may, at any time during the implementation of the plan, after notifying the Trustee and the Unit, where the debtor is supervised by the regulatory authority, call the creditors to discuss any amendments it …

1. The Bankruptcy Court may, based on a motion to be submitted thereto during the period following the decision to ratify the plan and before the plan is fully implemented, decide to terminate the proceedings in either o…

1. If the Bankruptcy Court decides to be submitted thereto by the debtor, the Trustee, the regulatory authority or any of the creditors, decide to initiate bankruptcy proceedings. 2. The Bankruptcy Department shall, with…

Subject to the provisions regulating the application for initiation of the proceedings in the Preliminary Part of this Law, as well as cases of preventive settlement and cases of in which the Bankruptcy Court may issue a…

The Bankruptcy Department shall refer the file of the application for the initiation of proceedings to the Bankruptcy Court within (10) ten days from the date of submitting the file to issue a decision to initiate bankru…

1. Where a list of debts has not previously been prepared in accordance with the provisions stipulated in Chapter II of this Law relating to proceedings, the Trustee shall prepare a list of debts and get the same ratifie…

Any claims previously dismissed by the Bankruptcy Court shall not be admitted, once the dismissal decision becomes final.

The Trustee is not obligated to conduct or complete a debt audit or prepare a list thereof if it becomes clear to him that all proceeds from the sale of the debtor's assets are incurred to pay the fees, charges and costs…

1. The Bankruptcy Court assigns an employee of the Bankruptcy Department to, within (10) ten days following the date of issuance of the decision to initiate Bankruptcy Proceedings, affix seals on the debtor's businesses,…

1. The seals may not be affixed to the clothing, movables and necessary items of the debtor and its dependents, which are handed over to the debtor as per a list signed thereby. 2. The Bankruptcy Court may order not to a…

The Bankruptcy Court shall order, upon the Trustee's request, the removal of the seals and inventory of the debtor's assets, and the removal of the seals and inventory shall begin, not later than (10) ten days following …

The inventory shall be conducted in the presence of the head of the Bankruptcy Department or its delegate and the Trustee. The debtor, the Public Prosecution, the Unit, where the debtor is supervised by the regulatory au…

The Public Prosecution has the right to attend the inventory, and it may, at all times, request to be given access to the papers and books concerning the bankruptcy and request clarifications about their status, the prog…

1. If the decision to initiate the proceedings was issued after the death of the debtor and an inventory list was not prepared on the occasion of the death, or if the debtor died after the aforementioned decision was iss…

1. After the inventory, the Trustee shall take over the debtor's assets, books and papers, and he shall subscribe its signature at the end of the inventory list to indicate so. 2. The Trustee shall receive letters receiv…

If the debtor has failed to submit the balance sheet, the Trustee shall prepare it immediately and file the same with the Bankruptcy Department.

1. As soon as a decision is issued to initiate Bankruptcy Proceedings, the debtor shall be prohibited from disposing of its assets and businesses and from managing them, and the Trustee shall assume the management of the…

If the disposition is not valid and cannot be invoked unless upon notation, registration or other procedures, it shall not be deemed effective vis-à-vis the creditors unless the procedure is completed before the issuance…

1. The prevention of the debtor from disposing of its assets include all the assets owned by it on the day the decision to initiate Bankruptcy Proceedings is issued and the assets owned by the debtor after the issuance o…

1. The Bankruptcy Court may, upon motion of the Trustee or the debtor, authorize the debtor to continue practicing its business if the public interest, the interest of the debtor or the interest of the creditors so requi…

1. The debtor's assets may not be sold during the period of preliminary proceedings extending from the date of submitting the application until a decision is issued thereon. However, the Bankruptcy Court may, upon motion…

1. The Bankruptcy Court may, based on the Trustee's proposal, order, when necessary, that the first amounts collected for the bankruptcy account be used to repay the debts of creditors who have a lien over the debtor's a…

The lien created in favor of the government shall not include taxes of all types except the tax due on the debtor before the issuance of the decision to initiate bankruptcy proceedings.

If the debtor is a lessee of the property in which it conducts business, the lease agreement shall continue to be effective, and any condition to the contrary shall be void.

Notwithstanding the provisions of Article (140) of this Law, the Trustee may, within sixty (60) days following the date of issuance of the decision to initiate bankruptcy proceedings, decide to terminate the lease agreem…

1. In the event of termination of a lease agreement in accordance with the provisions of this Law, the lessor that leases out a property to the debtor shall have a lien for the two years preceding the issuance of the dec…

1. The Trustee decides to continue the lease, and he shall pay the overdue rent, without prejudice to the lessor's right to request termination of the lease agreement due to abstention or delay in respect of paying the r…

1. If a decision is issued to initiate bankruptcy proceedings for the employer, the contracts of the debtor's employees may not be terminated unless it is decided not to continue the debtor's business. In the event of te…

If it is decided to continue the debtor's business, the Trustee shall pay the necessary amounts to the suppliers of goods and service providers for the sake of the continuation of the debtor's business regularly at the t…

1. The Trustee shall, not later than the ten (10) days following the issuance of a decision to initiate bankruptcy proceedings, and despite the presence of any other debt, use whatever amounts in his possession to pay th…

1. If the Trustee is of the opinion that the assignment of an existing contract largely would serve the best interest of the bankruptcy estate, he shall submit an application to the Bankruptcy Court for approval to assig…

1. The following actions may not be invoked vis-à-vis the creditors, if they are carried out by the debtor in respect of whom a decision is issued to initiate bankruptcy proceedings over its debts during the six (6) mont…

1. A court may order that the registration of the mortgage or lien over the assets of the debtor in respect of whose debts a decision has been issued to initiate bankruptcy proceedings regarding its debts vis-à-vis the c…

1. The Bankruptcy Court may order to dismiss the actions referred to in Articles (148) and (149) of this Law if it is convinced that the debtor has acted in good faith and with the aim of carrying out its business and th…

The Trustee may request that the debtor's acts occurring before the issuance of the decision to initiate bankruptcy proceedings to the detriment of creditors be invalidated, in accordance with the provisions of the Civil…

1. If the debtor's acts are ordered invalidated vis-à-vis the creditors, the party, with which the disposition was executed, shall refund to the debtor or the Trustee, as the case may be, the amounts that he obtained fro…

If the debtor has an obligation to pay a periodic salary for life or pay installments, and the same is in exchange for compensation, the Bankruptcy Court may, upon motion of the creditor, order, after hearing the opinion…

The creditor, whose debt is contingent upon a resolutory condition, shall only be involved in the proceedings where it provides a Surety or sufficient security. For the creditor whose debt is contingent upon a suspensive…

The Bankruptcy Court may, upon motion of the debtor or its dependents and after hearing the Trustee's statements, determine living expenses for the debtor in respect of whose debt a decision to initiate bankruptcy procee…

1. After the issuance of the decision to initiate bankruptcy proceedings, no case may be filed against the debtor or proceed, except for the following cases: a. Claims concerning the assets and dispositions not included …

1. The power of attorney shall be terminated upon the issuance of a decision to initiate bankruptcy proceedings for the attorney-in-fact or the principal. However, the power of attorney shall not be terminated upon the i…

1. The issuance of a decision to initiate bankruptcy proceedings shall result in the extinguishment of due dates of monetary debts owed by the debtor, whether they are ordinary debts or secured debts. The interest on ord…

The Bankruptcy Court may deduct from the deferred debt, for which no interest is stipulated, an amount equivalent to the legal interest for the period following the date of issuance of a decision to initiate bankruptcy p…

Notwithstanding Article (157.2) of this Law, the debtor may, with the permission of the Bankruptcy Court, engage in new business using other than bankruptcy estate, provided that the same does not result in damage to the…

1. If a debtor pays the value of a negotiable instrument after the cessation of payment date and before the issuance of a decision to initiate bankruptcy proceedings, the amount paid may not be recovered from the instrum…

1. Bankruptcy shall only be established under a judgment declaring bankruptcy. 2. The Bankruptcy Department shall, within ten (10) days following the date of issuance of the bankruptcy judgment, announce and record the o…

Other than the provisions contained in this Chapter, the effects resulting from the issuance of the decision to initiate bankruptcy proceedings in accordance with this Law shall remain effective with respect to the bankr…

A person, against whom a final judgment has been issued for committing any of the crimes of fraudulent bankruptcy shall be temporarily deprived of exercising political rights, membership in the Federal National Council, …

The insolvent debtor may not be absent from its domicile without notifying the Trustee in writing of its place of residence, and may only relocate its domicile based on a written permission from the Bankruptcy Court.

It is required to include in all correspondence in relation to the bankrupt's business during bankruptcy proceedings, in addition stating that the debtor is subject to bankruptcy proceedings and its assets are under liqu…

The Bankruptcy Court may, sua sponte or upon the motion of the Public Prosecution or the Trustee, decide to place the insolvent debtor under surveillance, and the Public Prosecution shall implement this decision immediat…

1. If the debtor, before the bankruptcy declaration judgment becomes final, becomes able to repay all the debts owed thereby, the Court of Appeal may, upon motion of the debtor or the Trustee, grant the debtor a time lim…

1. The Trustee shall call the debtor and the creditors to a meeting to provide their proposals regarding liquidation and distribution, provided that the meeting is held within (20) twenty days from the date the Trustee t…

The Trustee shall develop a plan to liquidate and distribute the debtor's assets to the creditors, provided that he completes the preparation of this plan and notifies the representative of the Creditors' Committee and m…

The liquidation and distribution plan shall include the following attachments: 1. A statement of all the debtor's assets and their latest valuation. 2. The method proposed by the Trustee to liquidate the debtor's assets …

1. The Trustee shall call the creditors to approve the liquidation and distribution plan pursuant to a notice containing the date and place of the meeting, provided that the meeting is held not later than (30) thirty day…

1. Only creditors whose debts are approved, even temporarily, may engage in voting on the liquidation and distribution plan. The liquidation and distribution plan shall have met the approval of the creditors if approved …

1. A minutes shall be drawn up of the results of the voting meeting on the liquidation and distribution plan, and shall be signed by the Trustee, chairman of the meeting, the creditors present and having the right to vot…

1. The Trustee shall, within ten (10) days from the date of the creditors' approval or rejection of the liquidation and distribution plan, notify the Bankruptcy Department thereof. The plan that was presented to the cred…

1. The Bankruptcy Court may approve the liquidation and distribution plan even if it proposes the sale of all or any of the debtor's assets through an open auction or without open auction, or that all or part of the debt…

The debtor or any related party may not submit a bid to purchase any of the debtor's assets offered for sale, except when the same is offered for sale at an open auction.

The Trustee shall submit to the Bankruptcy Court a monthly statement on the status of liquidation, the amounts collected and the distributions made to creditors in accordance with the plan.

1. The creditors, whose rights are secured by movable or immovable property, shall take precedence over other preferred creditors and ordinary creditors, according to the extent of their securities, and shall be followed…

1. The Trustee may only pay the creditor's distribution share if the creditor submits the debt deed marked with a proof of being verified and accepted. The debt deed shall be marked with a note indicating the amounts pai…

1. If six (6) months have passed without the liquidation process being completed, or without any remarkable development be achieved in respect thereof, the Trustee shall submit to the Bankruptcy Court a report on the liq…

1. The Trustee shall, within ten (10) days following the completion date of the liquidation work, notify the Bankruptcy Department and the creditors of the same. The notice so served shall be accompanied by a final state…

1. The Trustee shall serve upon both the Bankruptcy Department and the creditors a copy of the minutes of meeting referred to in Article (182) of this Law, within ten (10) days following the meeting date. 2. The Bankrupt…

The Trustee shall hand over to the debtor any surplus amounts resulting from the liquidation after all debts are settled, and shall also hand over all documents that are in its possession to the eligible party after the …

1. Each creditor shall have the right, after the bankruptcy proceeding is completed, to take unilateral actions in order to collect their remaining debt balances. If the creditor's debt has been verified and finally acce…

1. If the bankruptcy proceeding is suspended due to lack of debtor's assets before the composition is endorsed, the Bankruptcy Court may order that the bankruptcy proceeding be closed. 2. The decision to close a bankrupt…

The insolvent debtor and every stakeholder may file a motion with the Bankruptcy Court to revoke the decision to close the bankruptcy proceeding, if it is proven that there are sufficient assets to cover the bankruptcy p…

The Bankruptcy Department shall serve the bankruptcy proceeding closure decision pursuant to Article (35) hereof, and have the same decision recorded in both the bankruptcy register and the commercial register within ten…

The bankruptcy court may decide, after the final list of creditors is announced as described herein, and upon motion of the insolvent debtor or the Trustee, that the bankruptcy proceeding be terminated, if either of the …

1. The bankruptcy court may only issue a decision establishing termination of bankruptcy proceeding due to extinguishment of the creditors' interest after the Trustee submits a report asserting the fulfillment of either …

1. Composition may be established in respect of a debt after a final judgment declaring the debtor bankruptcy is rendered, in accordance with the provisions of Articles (192) through (200) hereof, but no composition may …

The application for composition shall be submitted to the Bankruptcy Department by the debtor or the creditor. Such an application shall include the conditions of compositions and shall be accompanied by an updated list …

1. If the composition application is submitted by the trustee, the latter shall attach thereto a comprehensive report on the state of the bankruptcy proceeding and actions taken in respect thereof, and evidence that he p…

The Bankruptcy Department shall, within ten (10) days from the date of submitting the composition application, notify the Unit, where the debtor is supervised by the regulatory authority, of the application and its attac…

1. The trustee shall, within ten (10) days from the date of his notification, call the creditors to meet to discuss the terms of the composition. If the application is submitted by the debtor and the trustee has not prev…

1. The trustee shall notify the Bankruptcy Department of the creditors' approval or disapproval of the composition, not later than (10) ten days following the meeting in which the approval or disapproval was decided. He …

The trustee shall supervise the implementation of the terms of the composition, submit a monthly report on the proceedings undertaken regarding the implementation of the conditions of the composition and notify the Bankr…

1. In the event that the conditions for composition are fully implemented, the trustee shall submit an application to the Bankruptcy Department to issue a decision terminating the bankruptcy proceeding through compositio…

1. The trustee shall submit to the Bankruptcy Department a final account on the bankruptcy proceeding within (10) ten days from the date of issuance of the decision to terminate the bankruptcy proceeding due to compositi…

All effects of bankruptcy shall cease to exist upon the issuance of a decision to terminate the bankruptcy proceeding due to composition.