Section IV Meeting of Creditors

(1)

The meeting of creditors shall be convened after the approval of the list under Art. 692 by the court.

(2)

After receivables are accepted, voting rights at the meeting of creditors shall be granted only to creditors with accepted receivables.

(3)

(Amended - SG 70/1998) The court may grant voting rights also to a creditor under Art. 637, paragraph 3, provided his receivables are supported with convincing evidence in writing, as well as to a creditor with not accepted receivables, provided he has appealed the ruling under the Article 692.

(4)

No voting rights under paragraph 3 shall be granted to a creditor under Art. 616, paragraph 2.

(1)

The court shall convene the meeting of creditors upon the request of the debtor, receiver, creditors' committee or creditors holding one fifth of the amount of accepted receivables, not later than 7 days fro the receipt of the request.

(2)

The meeting of the creditors shall be convened immediately after the approval by the court of the list of the accepted  under Art. 692, Par. 3, and if there are no objections - under Art. 692, Par. 1 with agenda under Art. 677, Item 8.

(1)

(Supplemented SG 84/2000) The invitation for the meeting of creditors shall contain the trade name and seat of the debtor, agenda, date, hour and venue of the meeting.

(2)

The invitation shall be promulgated in the State Gazette, the advertisement being considered due notification of all creditors.

(1)

(Amended - SG 84/2000) The meeting of creditors shall be held, regardless of the number of persons present and shall be governed by the judge who is responsible for the case.

(2)

During the decision-making process, each creditor shall be entitled to a number of votes representing the proportional share of his receivables in the total amount of accepted receivables and the receivables with voting rights under Art. 673, paragraph 3.

(3)

Decisions shall be made by simple majority vote, unless the law prescribes otherwise.

(4)

(New - SG 84/2000) The participation of the creditors in the meeting shall be carried out under the terms of Art. 670, Par. 1.

(1)

The meeting of creditors shall:

1.

listen to the report of the receiver on his activities;

2.

hear the report of the creditors' committee;

3.

(Amended - SG 84/2000) nominate a receiver, if none has been nominated, and Art. 672, Rar. 2 shall apply;

4.

(Amended - SG 84/2000) make a resolution for a discharge of the receiver and his replacement;

5.

propose to the court the amount of the receiver's remuneration or any alteration thereof;

6.

appoint the creditors' committee, if none has been appointed, or change its membership;

7.

propose to the court the amount of the subsistence for the debtor and his family.

8.

(New - SG 84/2000) determine the methods and criteria for valuation of the debtor's property and the size of the remuneration of the assessors.

(2)

If the meeting of creditors fails to make a decision under paragraph 1, item 3, the receiver shall be appointed by the court. The court ruling shall not be subject to appeal.

(3)

Minutes shall be taken at the meeting of creditors and signed by the chairing person and the secretary of the meeting.

(4)

(New - SG 84/2000) If the meeting of the creditors con not make a resolution on Par., It. 8, it shall be made by the receiver.

The decisions made by the meeting of creditors shall be binding on all creditors, including those absent.

(1)

The bankruptcy court may repeal a decision of the meeting of creditors, at the request of the debtor or a creditor, where such decision is unlawful or causes substantial damage to a part of the creditors.

(2)

(Amended - SG 84/2000) The request shall be filed within seven days after the meeting is held and it shall be examined by the court of jurisdiction over bankruptcy with the debtor and creditors being summoned to the court session. The court session for the consideration of the request shall be held not later than 14 days from its filing.

(3)

Creditors under paragraph 2 shall be summoned through advertisement in the State Gazette.

(4)

(Amended - SG 84/2000) The court shall rule by definition.

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