Article 678 — Preparation of the Reorganization Plan

1/ The reorganization plan is prepared by the debtor with the assistance of the supervisor in reorganization. 2/ Creditors shall have the right to seek amendment to the reorganization plan and make counter-proposals. 3/ Subject to mandatory laws, the reorganization plan may provide for: a) the rescheduling of claims of the affected creditors; b) the waiver of claims of the affected creditors; c) the settlement of claims by issuing financial debt instruments, subject to laws regulating the issuance of financial debt instruments; d) the conversion of claims of the affected creditors into equity; e) the reduction and increase of capital of the debtor to be subscribed to by creditors or third-party investors or the sale of equity interest in favor of creditors or third-party investors; f) a sale of assets or business units but excluding the sale of the business as going-concern. 4/ The reorganization plan shall outline the criteria used to constitute classes of creditors. 5/ The reorganization plan shall at all times comply with the “best-interest-of-creditors’ test”, whereby no dissenting creditor would be worse off under the reorganization plan than he would be if the ranking of priorities in bankruptcy proceedings was applied under Article 786 of this Code.