English
1/ The supervisor in reorganization shall present to the
court the reorganization plan which has been accepted,
together with a report containing his comments and
recommendations; such report shall be filed with the
Court at least three days before the Court hearing and
shall be freely accessible to all parties to the
proceedings.
2/ At the Court hearing, the supervisor in reorganization,
the debtor and creditors shall be heard.
3/ In approving the reorganization plan, the Court shall
verify that:
a) the reorganization plan has been approved by the
required majority of the creditors, and has a
reasonable prospect of preventing the bankruptcy
of the debtor and assuring the viability of the
business;
b) the reorganization plan complies with the “best-
interest-of-creditors’ test”;
c) no shareholder would be worse off under the
reorganization plan than such shareholder would
be in case of bankruptcy proceedings;
d) third parties’ interests are adequately protected in
particular with respect to the taking of security
interests and in the framework of new financing;
e) in case of cross-class cram-down provided for
under Article 683(3) of this Code, dissenting
voting classes of affected creditors are satisfied in
full by the same or equivalent means where a class
ranking below is to receive any payment or keep
any interest under the plan;
f) Classes of creditors with the same rank shall
receive the same or equivalent satisfaction of their
claims;
g) the Court may, on its own motion, depart from
principles
e) and/or
f) above where it is necessary
to achieve the aims of the reorganization plan and
where the reorganization plan does not unfairly
prejudice the rights or interests of any affected
parties;
h) no class of affected parties may, under the
reorganization plan, receive or retain, more than
the full amount of its claims.
4/ Natural persons as guarantors may protect their interest
by invoking the benefit of the provisions of the
reorganization plan.
5/ The judgment confirming or rejecting the reorganization
plan shall have an erga omnes binding effect and shall be
published in a newspaper of wide circulation in Ethiopia.
