Bankruptcy Law

1. If a debtor dies after the initiation of a protective settlement procedure, small debtors' protective settlement procedure, financial restructuring procedure, or small debtors' financial restructuring procedure, and prior to the issuance of a court decision to terminate any of such procedures, the procedure shall continue and the plan shall remain effective. The court shall invite the heirs of the deceased debtor and his creditors for a meeting within a period set by the Regulations to take any of the following: a) A decision to establish a limited liability company or joint stock company by the heirs of the deceased debtor, to which their rights and the rights of creditors in the bankruptcy assets represented by the debtor’s estate shall be transferred to constitute company assets. Upon establishment, the company shall be subject to the procedure and shall replace the debtor. The Regulations shall specify the necessary provisions. b) A decision to terminate the procedure and initiate a liquidation procedure or an administrative liquidation procedure, as specified in the Regulations. 2. If a decision pursuant to paragraph (1) of this Article is not possible, the court shall terminate the procedure and initiate the liquidation procedure or the administrative liquidation procedure, as specified in the Regulations. 3. The decision referred to in paragraph (1) of this Article shall be unanimously taken by the heirs of the deceased debtor and the creditors.