A trader – individual or company – whose financial position indicates that he may be unable to repay his debts—may file a request for amicable settlement with his creditors to the committees formed for such purpose at the Chambers of Commerce and Industry, in accordance with the rules and procedures specified by the Implementing Regulations of this Law

If an amicable settlement is not possible or if the trader – individual or company – determines that it is in his interest to file a petition for a bankruptcy protection settlement, he may petition the Board of Grievances to call his creditors and offer them a bankruptcy protection settlement.

Said trader shall provide in his petition the reasons for the instability of his financial position, his proposed terms for settlement, and the means of implementation, if any, and shall also enclose the following:

• a) A detailed statement of his movable and immovable properties and their respective book values at the time of filing the petition for settlement.

• b) A list of the names and addresses of creditors and debtors and the amounts of their rights and debts as well as related securities, if any.

• c) A declaration by the trader that he has not previously been awarded a bankruptcy protection settlement currently under implementation.

• d) An authorization for filing the settlement petition from the majority of partners in an unlimited liability company or a limited partnership and from the ordinary general assembly in other companies.

• e) Any other documents specified by the Implementing Regulations.

The Board of Grievances shall promptly consider the petition for settlement. If the Board determines that the petition satisfies the requirements set forth in Article 2 of this Law, the Board shall issue a decision to commence settlement proceedings and shall thereby appoint one of its members to oversee such proceedings and one or more trustees to carry out the same.

The Implementing Regulations shall specify the manner of calling creditors to convene, settlement proceedings, dates, and methods of announcement, as well as the qualifications of the trustees, their selection procedures, and the assignment of their duties.

The Board of Grievances may issue an order to take the necessary measures for the protection or management of the debtor's properties until a decision is reached regarding his petition. The Board may appoint one or more experts at the expense of the debtor to submit a report on his financial status and the reasons for instability thereof.

Without prejudice to the provisions of Article 8 of this Law, the trader shall, after issuing the decision for the initiation of settlement proceedings, continue to manage his business under the supervision of the trustee, and he may carry out all ordinary business activities.

Upon the issuance of the decision, the trader may not enter into settlement, pledge or guarantee, donate any of his property, or make any transfer of ownership that is not required by his ordinary business activities without obtaining prior approval from the judge overseeing the settlement. Any act contrary to the above shall be deemed invalid against the creditors.

Issuance of the decision for commencing settlement proceedings shall not entail the maturity of debts due on the debtor

Protection settlement shall not apply except with the approval of the majority of creditors, provided that such majority represents two-thirds of the undisputed ordinary debts.

Settlement may include payment of debts in installments, deferral of maturity dates, or relief of part thereof, or all of the above. Settlement may also include the appointment of a new management from within or outside the establishment to run the business; or the existing management shall continue performing its duties, provided that a person with experience in business is appointed to oversee the business, and his powers are determined.

Subject to Article 10, the settlement shall apply to all creditors whose debts are deemed ordinary, even if they have not participated in the proceedings or have not consented thereon. Settlement shall not apply to alimony debts, privileged debts, or debts arising after the issuance of the decision commencing settlement proceedings.

A creditor who objects to the remission of debt shall retain his entitlement to his debt. The decision issued for closing the settlement proceedings shall determine the maturity dates of these debts.