Newsletter-21

380 NEWSLETTER 2016 During the term of the concordat, the debtor’s authority on his/her assets is under the control of the concordat commissar. However, some transactions require the permission of the Court of Execution. The Concordat after the Bankruptcy (The Concordat in the Bankruptcy) The concordat after the bankruptcy (the concordat in the bank- ruptcy) is regulated for those debtors who are already bankrupt. If the concordat is approved, the bankruptcy for the debtor is cancelled with all its effects and outcomes. The debtor submits the request for concordat to the administrator of bankruptcy. The administrator of bankruptcy then informs the creditors of its own opinion concerning this request during the next creditors meeting, or at a later time. In this option, there is no term for the concordat, and neither is a com- missar appointed. The provisions of the concordat enter into force not after the concordat’s approval decision, but after the cancellation of the bankruptcy. The bankruptcy concordat is subject to the provisions regulating ordinary concordat terms, as much as they are in conform- ity thereof. The Concordat through Asset Abandonment If the parties agree on this type of concordat, the debtor transfers to the creditors his/her rights to dispose of, or to transfer, the asset, entirely, or in part, to third persons. Through this means, the creditors collect their receivables by disposing of the assets of the debtors that have been transferred to them. The creditors may appoint liquidators; however, the right to dispose of the assets is transferred to the creditors and the liquidators, after the approval of the liquidator by the Court of Execution. The liquidators will dispose of the assets of the debtor in manner that is similar to liquidation in bankruptcy, and will distribute the amount received from the sale to the creditors. Unless they are con- tradictory, the provisions regulating ordinary concordats are applied to the concordats through asset abandonment. The concordats, through asset abandonment, protect the debtor against the risk of underpriced sales of its assets during the bankruptcy period, and the creditors are protected against the risk of enduring a long bankruptcy period during which they are unable to collect on their debts.