Article 816 — Scope of Application

1/ The simplified bankruptcy proceedings referred to in this Title shall apply to small and medium-sized enterprises that are in cessation of payments and whose value of assets in their balance sheet of the last twelve months is less than Twenty (20) Million Birr, or whose annual turnover of the last twelve months is less than Five (5) Million birr (adjusted for inflation) or whose total number of employees is less than ten (10). 2/ The court shall not open simplified bankruptcy proceedings where the debtor has been dishonest and, in particular, concealed part of its assets, fraudulently omitted certain creditors, exaggerated his liabilities or committed any other fraudulent acts. 3/ Where the court determines that a debtor under simplified bankruptcy proceedings is dishonest according to Sub-Article (2) of this Article, it shall immediately convert simplified bankruptcy proceedings into bankruptcy proceedings.