English
1/ The judgment rendered for opening of reorganization
proceedings shall result in the commencement of an
observation period, the purpose of which is to enable:
a) the debtor to prepare a reorganization plan with the
assistance of the supervisor in reorganization;
b) the creditors and the supervisor in reorganization to
propose amendments to the reorganization plan of
the debtor or, where necessary, develop an
alternative reorganization plan;
c) the supervisor in reorganization to prepare, in
addition, a plan for the sale of the business as a
going-concern to investors; in preparing for the
sale of the business as a going-concern, the
supervisor in reorganization may conduct a market
study in connection therewith and shall solicit bids
by investors.
2/ The initial duration of the observation period shall be
limited to a maximum period of four months.
3/ Notwithstanding Sub-Article
(2) of this Article, the
Court may extend the duration of the observation
period or grant a new observation period, upon the
request of the debtor, a creditor, the controller or the
supervisor in reorganization; the Court may grant an
extension only if such an extension is duly justified by
the following circumstances:
a) relevant progress has been made in the negotiation
of the reorganization plan; and
b) the continuation of the general stay of individual
enforcement actions does not unfairly prejudice
the rights or interests of any affected parties.
4/ The total duration of the observation period granted,
including extensions and renewals, shall not exceed
twelve months.
