English
1/ The supervisor in reorganization shall constitute classes
of affected creditors to facilitate the adoption of the
reorganization plan.
2/ The classes of creditors shall reflect a sufficient
commonality of interest based on objectively verifiable
criteria; At the minimum, creditors of secured and
unsecured claims shall be treated in separate classes.
3/ Creditors that are secured by in rem security interest
over assets of the debtor shall participate in the class of
unsecured creditors for the amount of their claim that is
not covered by the liquidation value of the asset
affected as security.
4/ Creditors that are secured by personal guarantees and
insurance mechanisms may constitute a separate class.
5/ Employees of the debtor shall constitute a separate class
of their own where the employees' claim are affected by
the reorganization plan.
6/ Notwithstanding that shareholders are not creditors,
they shall constitute a separate class of their own.
7/ constitution of the classes and the criteria used for their
constitution shall be deposited with the Court's
registrar.
8/ Notwithstanding the provisions of Sub-Article
(1) of
this Article, where the debtor is a small or a medium-
sized enterprise (SME), at the request of the debtor or
the supervisor in reorganization, the supervisory judge
may decide not to treat affected creditors and
shareholders in separate classes. For the purpose of this
provision, a sole proprietor or a business organization
shall be considered as a small or medium sized
enterprise where:
a) it has less than ten employees; or
b) its turnover of the last twelve months is less than
five million (5,000, 000 Birr (subject to adjustment
for inflation); or
c) its total amount of assets in the last balance sheet of
the last twelve months is less than twenty
(20) million Birr.
9/ Any dispute with respect to the formation of the classes
of creditors shall be decided by the supervisory judge
within ten days from the deposit of the constitution of
classes of creditors with the court's registrar, subject to
an appeal to be filed within ten days from the date of
the judgment handed down by the supervisory judge.
