Article 657 — Pending Proceedings

1/ For the duration of the observation period, all pending legal proceedings, including arbitration, shall be suspended provided that the pre-insolvency claim has not been submitted. 2/ Upon acceptance of the pre-insolvency claim, such procedure shall continue with the supervisor in reorganization becoming a party to the proceedings, but such proceedings shall be limited to the establishment of the amount of the pre-insolvency claim. 3/ All proceedings not entailing the payment of pre- insolvency claim or the termination of ongoing contract for cause of non-payment, but excluding set off arising from ongoing contracts, shall not be affected by the opening of reorganization proceedings, in particular: a) criminal proceedings against the debtor; b) declaratory actions against the debtor; c) proceedings to enforce governmental regulatory powers; d) tax audits and investigations, except collection of taxes.