Bankruptcy Law

The court shall, on its own motion or upon the request of a person with interest, order the initiation of an appropriate bankruptcy procedure if: a) the debtor is distressed or bankrupt; b) the conditions for the initiation of the bankruptcy procedure are satisfied; and c) the protective settlement procedure is terminated pursuant to Article 39(b)(c)(e)(f) or (g) of this Law. Chapter 4 Financial Restructuring Procedure Article 42 Filing Petitions for the Initiation of the Procedure 1. Without prejudice to the provisions of relevant laws, the debtor, creditor, or the competent authority may file a petition with the court for the initiation of a financial restructuring procedure if the debtor is: a) likely to suffer financial difficulties that may lead to distress; b) distressed; or c) bankrupt. 2. A petition for the initiation of a financial restructuring procedure shall not be filed if the debtor has been subject to such procedure or to a small debtors' financial restructuring procedure during the 12 months preceding the petition. Article 43 Filing Petitions for the Initiation of the Procedure The petition for the initiation of a financial restructuring procedure shall be registered with the court upon filing it along with the relevant information and documents, as specified in the Regulations. Article 44 Filing Petitions for the Initiation of the Procedure If a person other than the debtor files a petition for the initiation of a financial restructuring procedure, the court shall notify the debtor thereof within a period not exceeding five days from the date of filing. The debtor may object to the petition before the court at the scheduled hearing if: a) the conditions for the initiation of the procedure are not satisfied; b) the debt is disputed; or c) the creditor seeks to abuse the procedure. The court may order the debtor to submit the information and documents specified in the Regulations. Article 45 Filing Petitions for the Initiation of the Procedure The debtor, owner, manager, official, member of the board of directors, and auditor shall be exempted from the provisions of the Companies Law regarding company’s losses amounting to a specific percentage under the Law, as specified in the Regulations.