SECTION 33

The competent court, which concludes that there is indeed insolvency, shall decide on the opening of either reorganization or judicial assets liquidation proceedings. It shall declare reorganization: - if it appears that the debtor has proposed a sustainable composition within the meaning of Article 27 above or that such an arrangement may likely succeed; - Or, where an overall insolvency is realistically foreseen. P. 42 of 139 Otherwise, the court shall decide the opening of assets liquidation proceedings. In the decision opening the assets liquidation proceedings, the competent court shall set the time period at the end of which the closing of the proceedings is examined provided that such time period may not exceed eighteen (l8) months from the opening of the procedure. If the closing of the proceedings cannot be ruled at the end of such period, the competent court may extend the term by six (06) months only once by a specially reasoned decision, after hearing the justifications of the trustee. Passed this deadline, the competent court shall order the completion of the assets liquidation, ex officio, or at the request of any interested party. The decision to open a reorganization or assets liquidation of a legal entity shall remain in force with respect to all its members who are indefinitely and severally liable for the claims of such entity and shall pronounce against each one of them, either the reorganization or the liquidation of the assets depending on their situation. At any time during the reorganization proceedings, the competent court may convert it to assets liquidation if the conditions in paragraph 2 above are no longer met. The provisions of articles 36 to 38 hereinafter shall be applied. In any case, at the expiry of the six (06) month-period from the decision to open the reorganization proceedings, which may be extended only once by the competent court, ex officio or at the request of the debtor or the trustee for a duration of three (03) months, the court shall convert the reorganization into assets liquidation, ex officio or at the request of any interested party. The decision of the competent court may be appealed. The Court of Appeal which cancels or reverses or upholds the decision of the Court of first instance may rule, ex officio, for reorganization or assets liquidation and refer the case to the Court of First Instance so as to continue the process, including the appointment of the receiver.