Article 260 of Bankruptcy Law

An application to commence proceedings submitted in respect of the company’s indebtedness shall be deemed submitted at the same time in respect of the indebtedness of each of its general partners as at the date of submission of the application, in addition to partners who have left the company and remained liable for its debts. Each indebtedness shall be independent of the others in terms of procedures, such as verification of debts, appointment of trustees, creditors’ meetings, submitted plans, trustees and supervisors, and the decisions taken and judgments issued in respect of each indebtedness. The company’s assets shall consist of its holdings, including the partners’ contributions, and its liabilities shall include only the rights of its creditors, Index of the Law 1447 Home Page Bankruptcy Law Law No. 71 of 2020 Promulgating the Bankruptcy Law whereas the general partner’s assets shall consist of his private property, and his liabilities shall include the rights of his creditors and the company’s creditors. If a decision is issued to commence proceedings for declaring the company bankrupt, or a judgment declares it bankrupt, this shall not prevent the issuance of a decision to commence preventive settlement or restructuring proceedings in respect of the partner, or vice versa. The same rule shall apply to the indebtedness of each general partner in relation to the other partners.