Bankruptcy Law

1. The small debtors' financial restructuring procedure shall be initiated pursuant to a court decision in accordance with Article 140 of this Law, by a judicial depository, or under paragraph (2) of this Article. 2. If the petition for initiation is filed by the creditor, the court shall consider such petition and decide as follows: a) Initiate the procedure if: I. it finds, based on information submitted thereto, that the small debtor is likely to remain in business and settle the claims of creditors within a reasonable time; II. ii. the small debtor is bankrupt, distressed, or is likely to suffer financial difficulties that may lead to distress; or III. iii. the creditor provides the information and documents referred to in Article 145 of this Law. b) Reject the petition if: I. the petition does not satisfy the statutory requirements, or is unjustifiably incomplete; II. it decides, based on information submitted thereto, that the small debtor is unlikely to remain in business or settle the claims of creditors within a reasonable time; or III. the petitioner acts in bad faith or commits any of the offenses stipulated in this Law. If the court rejects the petition, it may order the initiation of another suitable bankruptcy procedure. c) Postpone consideration of the petition for a period not exceeding 21 days to allow the petitioner or the small debtor to provide the court with the required additional information or documents, or for any other reason. Such information and documents shall be submitted on the set date and prior to the date set for the postponed hearing. The court shall decide to either initiate the procedure or reject the petition in accordance with the provisions of this Article. 3. The court shall notify the small debtor who fails to attend the hearing of its decision within five days from the conclusion of the hearing. Article 149 Appointment of a Small Debtors' Financial Restructuring Trustee 1. In its decision to initiate a small debtors' restructuring procedure, the court shall include the appointment of a listed trustee. The creditor may propose to the court the name of the listed trustee to be appointed. 2. The trustee assigned by the small debtor or the competent authority shall be considered appointed from the date of the judicial depository. 3. When appointing a trustee, his financial capabilities and academic qualifications, as well as the qualifications of his team shall be taken into consideration. 4. The trustee shall exercise due diligence to protect creditors’ interests. 5. Without prejudice to paragraph (2) of this Article, the trustee may, subject to the court's approval, assign some of his tasks to a listed trustee or expert if necessary, provided that such tasks are accurately described in the court’s decision. 6. The court may, when necessary, appoint up to three trustees to jointly act in accordance with the Law and court instructions, provided that the court appoints a chairman from among them. Said trustees shall be jointly and severally liable for their actions. The Regulations shall specify their work procedures. 7. The trustee shall deposit in the Bankruptcy Register a proof of his appointment, as specified in the Regulations. Article 150 Announcement of Small Debtors' Financial Restructuring Procedure 1. The trustee shall announce the initiation of the small debtors' financial restructuring procedure within five days from the date of its initiation, and deposit in the Bankruptcy Register proof of said initiation. He shall invite creditors to submit their claims within a period not exceeding 60 days from the announcement date, as specified in the Regulations. 2. The trustee shall notify the creditors known to him of the initiation of the procedure within five days, and shall invite them to submit their claims within a period not exceeding 60 days from the notification date. Article 151 Announcement of Small Debtors' Financial Restructuring Procedure 1. Any credi