Bankruptcy Law

1. An administrative liquidation procedure shall be initiated pursuant to a court order in accordance with Articles 41, 90, 123, 140, or 158 of this Law, or paragraph (2) of this Article. 2. The court shall set a date for considering the petition for the initiation of the procedure filed in accordance with Article 168(1) of this Law, provided that such date be within 40 days from the date of filing. The court shall notify the petitioner and the debtor of the date of the hearing within five days from the date of registration, and shall take any of the following decisions: a) Initiate the procedure if: I. the debtor is distressed or bankrupt; II. it finds, based on information submitted thereto, that the debtor is unlikely to remain in business, and that his assets are insufficient to cover the expenses of the liquidation procedure or the small debtors' liquidation procedure; or III. the petitioner submits the information and documents referred to in Article 168 of this Law. b) Reject the petition if: I. the petition does not satisfy the statutory requirements, or is unjustifiably incomplete; II. it establishes, based on information submitted thereto, that the debtor is likely to remain in business and settle the claims of creditors within a reasonable time; III. the petitioner acts in bad faith, or the petition involves abuse of the procedure; or IV. the debtor’s assets are sufficient to cover the expenses of the liquidation procedure or the small debtors' liquidation procedure. If the court rejects the petition, it may order the initiation of another suitable bankruptcy procedure. c) Postpone the hearing for a period not exceeding 21 days to provide any additional information or documents it requests 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 debtor who fails to attend the hearing of its decision, within five days from the end of the hearing.