The cancellation of the composition may be pronounced:
1) in case of non-observance by the debtor of his bankruptcy commitments or time extensions and debt reductions; however, the competent court, following the opinion of the public prosecutor and the controllers, shall determine whether these breaches are serious enough to definitively compromise the execution of the composition; and, in the contrary, it may extend the payment deadlines which shall not exceed more than six (6) months the extensions already granted by creditors;
2) when the debtor is prohibited, for whatever reason, from engaging in a professional independent activity, a commercial, civil, handicraft or agricultural activity unless the duration and nature of the said prohibition are compatible with the pursuance of the business activity of the company under a leasing business contract, for the purposes of a possible assignment of the company under satisfactory conditions for common interests;
3) when, in the case of a legal entity to which the composition is granted, the top executives who have been declared bankrupt, resume the management of the legal entity de jure or de facto; if these top executives have been prohibited from managing the company during the execution of the composition, the latter shall be cancelled unless the top executives stop performing the duties which have been prohibited; however, the competent court may grant a reasonable deadline, which shall not exceed three (3) months, to replace those top executives.
A creditor or controllers, party to the composition may file a petition with the competent court in that regard; the said court may also examine the matter on its own after hearing or duly summoning the debtor.
P. 88 of 139 The cancellation of the composition shall not release the securities attached to collateral security its full or partial execution.
Unofficial translation
Transcription: Spot-checked
In force from 24-12-2015
Source page 87
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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Section 139 of the Acte uniforme portant organisation des procédures collectives d'apurement du passif/akn/ohada/act/loi/2015-09-10/aupcap-2015
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