President Abdel-Fattah El-Sisi recently adopted a new law that is extremely important in improving investment, as stated by Dr. Sahar Nasr, Minister of Investment and International Cooperation, in addition to his effective role in improving the Egyptian arrangement according to the classification of doing business.
New Bankruptcy Law
It stipulated 17 definitions for restructuring, organization, and reconciliation. The following are the following:
Bankruptcy Management
An establishment that is designated within every economic court to receive all requests for restructuring, declaring bankruptcy, performing some mediation procedures, and preventing bankruptcy reconciliation.
Responsible Person
Examine all the requests that the bankruptcy department has received.
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Specialized Court
- Measures
- Mediation
- Reconciliation
- The Secretary of the Peace
- Observer
- Judge
- The Secretary of the Creditors Union
- Experts
- Restructuring
- Restructuring Committee
- Associate
Submitting a Bankruptcy Request
To facilitate the economic system, and among its decisions, some procedures were presented. These procedures must be followed before submitting a bankruptcy application and we will address in the next lines what the law stipulated about this application, and the measures taken to accept this request in detail.
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Request for Bankruptcy
The applicant could successfully submit his application, and the most important of which were stated in the following:
Restructuring of any merchant’s activities or funds in the event of a death, upon the request of the heirs within a period not exceeding the year following the death, but subject to the approval of all the heirs.
The inability to submit a request for restructuring while issuing any provisions related to bankruptcy declarations to the merchant, or while ruling on any procedures related to preventive conciliation, and accordingly it follows that submitting a request for restructuring, any other request related to the month of bankruptcy and protective conciliation is suspended until the end of the ruling in restructuring.
Creating a plan by which all the financial and administrative matters of the merchant can be reorganized, through which attempts are made to improve the financial conditions of the merchant, and help him get out of the financial and administrative turmoil and contribute to the payment of his debts while clarifying the sources from which funding is provided.
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Required Documents
All documents supporting the data mentioned in the application.
A certificate from one of the commercial offices proving that the merchant has made special provisions imposed by the commercial records in the past two years to request restructuring.
A certificate showing this merchant engaging in his commercial activities in the previous period, which is a maximum of about two years before the restructuring request.
The merchant’s budget includes all the profits and losses in the previous two years to request restructuring, and put data for total personal expenses in those two years, except for the request submitted by one of the joint-stock companies, to bring a detailed statement of all the funds, whether movable or immovable.
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Developing a list of the names of the debtor and the creditor and their addresses, and provide a rough estimate of their entitlements and some guarantees that guarantee their access to these rights.
A document with a certificate stating that the merchant did not submit a request for restructuring before, or that he did not submit a request with a maximum of at least three months.
The merchant does not declare bankruptcy or present any reconciliation at any time.
The company must bring the documents mentioned below in addition to a copy of the contract for the company authenticated from the commercial register and a copy confirming the approval of the partners or the general assembly on approval to submit the restructuring request.
Also read: Learn the Effects of Bankruptcy of Joint-Stock Companies