The competent court shall ratify the proposed judicial compositiononly where:
1) the conditions ofvalidity of the compositionare met;
2) there is no ground to believe that the common interest or public policy will likely hinder the composition;
3) in case of reorganization of a legal entity, it shall no longer be managed by its top executives whose replacement is proposed in the proposed composition or by the trustee or against executives whom personal bankruptcy has been pronounced;
4) the composition shall offer substantial opportunities for the debtor company restructuring, debt settlement and adequate collateralsecurities for its execution;
5) The conditions set forth in article 33-1 above are met where individuals benefit from a privilege provided for in this Uniform act and secured amounts are expressly stated.
Unless otherwise provided, the confirmation of the judicial composition may not validate special benefits as defined andsuppressedinarticles244and245hereinafter.Theextensions and reductions granted by creditors, holders of special secured debts or general privileges under the conditions set forth in articles 120 and 125 above shall not be deemed special benefits.
Nullity of the provision of special benefits shall not entail cancellation of the composition, subject to the provisions of Article 140 hereinafter.
Unofficial translation
Transcription: Spot-checked
In force from 24-12-2015
Source page 82
The document's transcription was spot-checked against the supplied source; this does not confirm a line-by-line review of every provision.
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