Article 577 — Rights of Debenture Holders

1/ Where the meeting of the debenture holders of the business organizations to merge or the organization to be divided disapproves the merger or division, the debtor organization shall redeem the debentures by paying the par value and interest due on the debentures to the debenture holders who submit their application within sixty consecutive days from the first publication of the merger or division plan in a newspaper. 2/ The provisions under Sub-Article (1) of this Article shall, likewise, apply to debenture holders of business organizations creating a new business organization by merger or division. 3/ Where the business organization announces that it will pay the par value and interest to debenture holders, it shall redeem the debentures from all those who prefer that, without the need for convening the meeting of debenture holders, by making the appropriate payment. 4/ The debenture holder that fails to submit his application within the time prescribed under Sub-Article (1) of this Article shall be a creditor of the acquiring or newly formed business organization, as the case may be.