Newsletter-21

379 the concordat either approves or rejects the concordat. Following the approval of concordat by the Commercial Court, the debtor pays its debts in line with the concordat, and will be free from the remaining part of its debts. The requirement for a term of concordat is to have a probable success through a concordat, with no intention to cause any damage or loss to the creditors. The requirements for the approval of concordat are a ratio between the proposed payment amount and the current of the debtor, an approval of one-half of the creditors whose receivable exceed two-thirds of the total debt, providing necessary security, and depositing litigation expenses and fees. Even if the concordat is approved, the creditors remain entitled to request the cancellation of the concordat if they realize that the debtor had sought approval of the concordat in bad faith. The cancellation of the concordat may be requested with regard to one creditor, or in whole. The concordat is binding also upon the creditors who are not par- ties to the agreement. However, for the pledgee-creditors, the credi- tors holding a right in rem arising from the state receivables, as well as all other preferential creditors, are not bound by the concordat. Therefore, these creditors have the right to collect their receivables, in their entireties. Those creditors who are bound by the concordat may only collect their receivables from the co-debtors, guarantors or sureties in line with the terms of the concordat. With few exceptions, execution proceedings may not be initiated against the debtor, and ex- ecution proceedings that were previously initiated will be suspended. The foreclosure executions will resume, but the assets of the debtors cannot be attached or sold. During the term of the concordat, the pro- visionary attachments are not implemented, and the lapse of time will not resume. Unless otherwise stipulated in the concordat, interest on the debts that are unsecured with a pledge right will not accrue. De- spite such protections in favor of the debtor, to file or resume an action against the debtor remains to be an option. LAW OF CIVIL PROCEDURE AND ENFORCEMENT AND BANKRUPTCY