SECTION 15

The competent court shall rule in a non-public hearing. 1. In case of payment failure, it shall, ex officio, ordain reorganization or liquidation of assets without prejudice to the provisions of articles 29 and 33 hereinafter. 2. When the situation of the debtor so justifies, the court shall confirm the arrangement by recording time extensions and debt reduction consented by creditors and by providing the debtor with proposed measures for the restructuring of the company. Time extensions and debt reduction granted by creditors may vary. The competent court shall confirm the proposed arrangement if: - it meets the conditions of validity of the proposed arrangement; - no ground from the public interest or public policy seems to encumber the composition; - The granted time extensions do not exceed three (03) years for all the creditors and one (1) year for salaried creditors. Where individuals enjoy the privilege of' Article 11-1 above, the court which confirms the arrangement shall check whether it meets the conditions set forth therein, and whether the granting of this priority does not affect the interests of the creditors. It shall state in its decision the said privilege and the guaranteed amounts. In case creditors reportedly refused to extend the deadlines and reduce the debt of the debtor, the president of the competent court shall lend his good offices to the creditors and the debtor. He shall hear their ground for refusal and initiate negotiations between the parties to enable them to reach an agreement. Where despite the good offices of the president, the parties fail to reach an agreement and in case the arrangement provides for only one time extension not exceeding two (02) years, the competent court may make this enforceable against creditors who refused any time extension and any debt reduction unless such extension jeopardizes these creditors’ company. Creditors of wages and maintenance shall neither agree to any debt reduction, nor be imposed a time extension that they have not consented thereto. 3. If the competent court considers that the situation of the debtor does not fall within any bankruptcy proceedings or if it rejects the arrangement proposed by the debtor, the preventive settlement shall cease without delay. This decision shall make the parties resume the initial situation.