Bankruptcy Law

1-A financial restructuring procedure shall be initiated by virtue of a court order pursuant to Article 41 of this Law or paragraph (2) of this Article. 2-The court shall set a hearing date for considering the petition for the initiation of the procedure within 40 days from the date of filing, and notify the petitioner and debtor thereof within five days from the date of registering the petition. The court shall take any of the following decisions: a) Initiate the procedure if: I. the debtor is likely to remain in business, and the claims of creditors are likely to be settled within a reasonable time; II. the debtor is bankrupt, distressed, or is likely to suffer financial difficulties that may lead to distress; or III. the petitioner provides the information and documents referred to in Article 43 of this Law. b) Reject the petition if: I. the petition does not satisfy the statutory requirements, or is unjustifiably incomplete; or II. ii. the petitioner acts in bad faith, or commits any of the offenses stipulated in this Law. 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. Such information and documents shall be submitted 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 date of its issuance.