English
1/ A debtor or a de facto or de jure manager of debtor’s
business who, during reorganization or bankruptcy
proceedings:
a) grants a mortgage or a pledge or carries out an act
of transfer without the permission provided for in
Article 653 Sub-Article
(3) of this Code, or who
pays, in whole or in part, a debt in breach of the
prohibition referred to in Article 656 Sub-Article
(1) of this law;
b) makes a payment in breach of the terms and
conditions for the payment of liabilities provided
for the reorganization plan under Article 687 Sub-
Article
(1) of this Code.
2/ A creditor of the debtor who, during the observation
period or while a restructuring plan or reorganization
plan is being implemented, while being aware of the
debtor’s situation, requests or receives an irregular
payment under Article 655
(5) and Sub-Article
(2) of
687 this Code;
3/ A winning bidder who violates the obligation of
untransferability of assets under Article 694 Sub-
Article
(3) of this Code;
shall, upon conviction, be punishable by simple
imprisonment not exceeding one year and a fine of Ten
Thousand (10, 000) Ethiopian Birr.
