Law on Amendment of Enforcement and Bankruptcy Law

Equity companies and cooperatives are able to request an arrangement of bankruptcy instead of suspension of bankruptcy.

Each creditor entitled to bankruptcy petition is able to request the arrangement of bankruptcy operations to take effect on the obligor with a reasoned request.

Upon request of arrangement of bankruptcy, the court will decide on a temporary respite after determining that all the requested documents are completely present and will take all the precautions necessary in order to protect the assets of the obligor.

The court will also be able to constitute a board of creditors and commissioner will be assigned.

The law makes regulations on rejection of arrangement of bankruptcy for a certain term and opening of bankruptcy. The order of bankruptcy is now determined by and limited to those subject to the bankruptcy and this is stipulated by realization of one of the valid bankruptcy reasons.

If the obligor is not in accordance with the terms of arrangement of bankruptcy, then the request will be rejected and the bankruptcy of the obligor will be decreed.

Even though there are no provisions in the contract accordingly, the contract will not be terminated on account of the fact that the obligor requests an arrangement of bankruptcy.

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