Bankruptcy Law

1. If the debtor dies after filing a petition for the initiation of a liquidation procedure, small debtors' liquidation procedure, or administrative liquidation procedure, and prior to a court decision to initiate the procedure or reject the petition, the court shall consider such petition and shall, if the conditions for initiating a procedure are not satisfied but the conditions for initiating a financial restructuring procedure are satisfied, invite the heirs of the deceased debtor and his creditors for a meeting within a period specified 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 debtor’s assets represented by the debtor’s estate shall be transferred to constitute company assets. The company shall replace the deceased debtor in completing the initiation of the financial restructuring procedure. The Regulations shall specify the necessary provisions. b) A decision to initiate the liquidation procedure, as specified in the Regulations. 2. If the court establishes that the conditions for the initiation of the procedure are satisfied, or if taking a decision in accordance with paragraph (1) of this Article is not possible, it shall initiate the liquidation procedure or the administrative liquidation procedure for the estate of the deceased debtor, 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.