(reasons for objection to the conduct of compulsory settlement proceedings) Each creditor or administrator may enter an objection on the non-existence of conditions for the conduct of compulsory settlement proceedings (hereinafter referred t as: appeal against the conduct of compulsory settlement proceedings):
1. if the debtor is not insolvent and can meet all obligations in full and in time,
2. if the insolvent debtor can meet his obligations to a greater extent and within shorter time limits than offered by the compulsory settlement petition,
3. if the degree of confidence that the execution of the financial restructuring plan would enable the financial restructuring of the debtor which would provide for his liquidity and solvency, is lower than 50 per cent,
4. if the degree of confidence that the confirmed compulsory settlement, proposed by the debtor, would ensure the creditors more favourable payment conditions for their claims than would be the case in initiation of bankruptcy proceedings against the debtor is lower than 50 percent, or
5. if the insolvent debtor acts contrary to Article 151 of Subsection 4.4.1 of this Act.
Article 173
(time limits for objection to the conduct of compulsory settlement proceedings) (1) An objection to the conduct of compulsory settlement proceedings shall be lodged within three months following the publication of the notice on the initiation of compulsory settlement proceedings, unless otherwise provided for in the second paragraph of Article 174 of this Act.
(2) If the objection aims at exercising the reason referred to in point 5 of Article 172 of this Act, such appeal shall be lodged by the expiry of eight days following the publication of the notice for casting votes for compulsory settlement.
Article 174
(special rules if the debtor changes the financial restructuring plan)
(1) The rules laid down in this Article shall apply when the debtor, in accordance with Subsection 4.4.3 of this Act, changes the financial restructuring plan.
(2) An objection to the conduct of compulsory settlement proceedings, which exercises the reason referred to in points 2, 3 or 4 of Article 172 of this Act in relation to the changed financial restructuring plan, shall be entered within fifteen days following the publication of the change to the financial restructuring plan.
(3) When, prior to the publication of the change to the financial restructuring plan, an objection to the conduct of compulsory settlement proceedings has been entered which exercises the reason referred to in points 2, 3 or 4 of Article 172 of this Act, the person entering the objection shall declare within fifteen days following the publication of the change of the financial restructuring plan to persist in the appeal, otherwise such appeal shall be considered as withdrawn.
Article 175
(objection proceedings against the conduct of compulsory settlement proceedings)
(1) If the objection to the conduct of compulsory settlement proceedings is entered after the expiry of the time limit referred to in Articles 173 or 174 of this Act, the court shall reject such objection.
(2) If the objection to the conduct of compulsory settlement proceedings is entered timely, the court shall within three working days following the receipt of the objection to the conduct of compulsory settlement proceedings:
1. publish the objection and the attached documents,
2. serve the objection with attachments on the insolvent debtor and warn him of the legal consequences referred to in the second paragraph of Article 176 of this Act, and 3. serve the objection with attachments to the administrator, if he is not the person entering the objection.
Article 176
(statement of insolvent debtor on objection to the conduct of compulsory settlement proceedings)
(1) An insolvent debtor may within eight days following the service, pronounce on the objection to the conduct of compulsory settlement proceedings.
(2) If the insolvent debtor does not lodge the statement referred to in the first paragraph of this Article within eight days following the receipt of the objection, it is considered, and evidence to the contrary shall not be allowed, that the reason exist referred to in Article 172 of this Act, which is to be enforced by the objection.
(3) After the expiry of the time limit referred to in the first paragraph of this Article, the insolvent debtor may not state any new facts and offer any new evidence.
Article 177
(hearing for the objection proceedings against the conduct of compulsory settlement proceedings)
(1) If the insolvent debtor does not lodge the statement on opposing the conduct of compulsory settlement proceedings within the time limit referred to in the first paragraph of Article 176 of this Act, the court shall decide out of the hearing.
(2) If the insolvent debtor lodges the statement on opposing the conduct of compulsory settlement proceedings within the time limit referred to in the first paragraph of Article 176 of this Act, the court shall fix and publish the call up of the hearing for the objection within three working days following the receipt of the statement, for a day which shall not be later than one month following the lodgement of the statement, and not earlier than fifteen days following the publication of the call up of the hearing.
(3) At the hearing for objecting the conduct of compulsory settlement proceedings the court shall produce evidence as to the reason enforced by the objection, and decide on the objection on the basis of the evidence produced.
Article 178
(time limit for deciding on the objection to the conduct of compulsory settlement proceedings)
(1) The court shall issue a resolution on deciding on a timely objection to the conduct of compulsory settlement proceedings, within eight days.
(2) The time limit referred to in the first paragraph shall start:
1. if the insolvent debtor does not lodge the statement on opposing the conduct of compulsory settlement proceedings within the time limit referred to in the first paragraph of Article 176 of this Act: as of the expiry of the time limit for the statement,
2. if the insolvent debtor lodges the statement on opposing the conduct of compulsory settlement proceedings within the time limit referred to in the first paragraph of Article 176 of this Act: as of the end of the hearing.
Article 179
(deciding on the objection)
(1) If the objection aims at enforcing the reason referred to in point 1 of Article 172 of this Act and the court assesses that such reason exists, the court shall refuse the debtor’s petition for compulsory settlement.
(2) The debtor shall not lodge a new petition for instituting compulsory settlement proceedings for two years following the issue of the resolution referred to in the first paragraph of this Article.
(3) If the objection aims at enforcing the reasons referred to in points 2, 3, 4 or 5 of Article 172 of this Act and the court assesses that such reasons exist the court shall terminate compulsory settlement proceedings and issue a resolution on the initiation of bankruptcy proceedings.
(4) If the court assesses that a reason subject to enforcement by the objection does not exist, it shall refuse the objection.
Subsection 4.4.3: Change to the financial restructuring plans