Bankruptcy Law

Without prejudice to the provisions of relevant laws, a person shall be deemed in violation of the provisions of this Law if he commits one or more of the following acts prior to the initiation of any bankruptcy procedure which result in the initiation of the procedure, or commits such acts during the procedure, which are detrimental to third party rights including creditors: a) Embezzling or concealing any of the debtor’s assets or bankruptcy assets. b) Concealing, destroying, or altering any of the debtor’s books, or failing to properly keep them, or keeping debtor's books with incomplete or irregular data, taking into account the standards adopted for management and maintenance of accounts. c) Retaining fictitious accounts, or failing to keep accounts in accordance with approved standards, or removing their documents. d) Engaging in fraudulent conduct for the purpose of inflating the debtor’s liabilities or reducing the value of his assets. e) Submitting misleading or incorrect information in any form to the bankruptcy trustee, the court, or the Bankruptcy Committee, or failing to provide crucial information to the court, the bankruptcy trustee, or the Bankruptcy Committee upon request. f) Pledging or disposing of any of the debtor’s assets, or paying all or part of any debts in violation of this Law or a judicial ruling. g) Settling any creditor rights or disposing of any debtor or bankruptcy assets in violation of the plan, excluding any partial or total discharge of debts by creditors to debtors. h) Abusing powers directly or indirectly for personal gain or to obtain unlawful benefit from a third party.