Article 58 of Bankruptcy Law

Subject to the provisions established in this Law concerning an application to commence proceedings, the debtor may submit an application to commence preventive settlement proceedings in accordance with the following: (1) If the debtor has ceased payment, or there are reasons causing the debtor to expect or fear inability to pay all or some of its debts when due, as set out in the Executive Regulations. (2) If the debtor is in a state of financial deficit, or there are reasons causing the debtor to expect or fear being in a state of financial deficit when some or all of its debts fall due, as set out in the Executive Regulations. (3) That the debtor’s business is viable. (4) If its creditors have previously rejected a preventive settlement proposal, or the Bankruptcy Judge has previously issued a decision refusing to ratify a preventive settlement proposal, even if this concerned debts of the debtor other than those in respect of which the application is submitted, the application may not be submitted until three months have elapsed from the date of the creditors’ meeting or the aforementioned decision of the Bankruptcy Judge. (5) If its creditors have previously rejected a restructuring plan, or the Bankruptcy Judge has previously issued a decision refusing to ratify a restructuring plan, even if this concerned debts of the debtor other than those in respect of which the application is submitted, the application may not be submitted until three months have elapsed from the date of the creditors’ meeting or the decision of the Bankruptcy Judge referred Law Index 1400 Home Page to. 6) If a decision has previously been issued by the Bankruptcy Judge or a judgment by the Bankruptcy Court terminating preventive settlement proceedings or terminating restructuring proceedings, even if this concerned debts of the debtor other than those in respect of which the application is submitted, the application may not be submitted until three months have elapsed from the date of issuance of the aforementioned decision of the Bankruptcy Judge or judgment of the court. 7) If a final judgment has previously been issued declaring the debtor bankrupt, the application may not be submitted until three years have elapsed from the conclusion of the bankruptcy. 8) If the indebtedness in respect of which the application is submitted is still subject to any proceedings under this Law in implementation of a decision issued to commence proceedings under this Law, the application may not be submitted. As an exception to the provisions of items Nos. 4, 5, 6, 7, 8 of this Article, the debtor may submit the application at any time if it attaches evidence of the prior approval of the required majority of the preventive settlement proposal in respect of which the application is submitted.