The necessary procedures for implementing the pre-prepared reorganization plan in the Jordanian insolvency law

Abstract

During the preliminary stage، the legislator establishes a process that debtors can follow to avoid insolvency before it occurs، which involves reorganisation according to a pre-prepared plan. Accordingly، if the debtor is almost insolvent during a specific period، the legislator allows them to submit a plan proposal، in which they demonstrate a mechanism for reorganising their business and thus surpass insolvency. The plan must be accepted by a certain number of creditors or a specified percentage of them and approved by the court.

The pre-prepared reorganisation plan، whose provisions are regulated by the legislator during the preliminary stage، is considered a mechanism used by a debtor to rescue his economic activity from insolvency، where he gains more benefits and maintain his income resource، the employees maintain their jobs and income resource، and the creditors ensure returning the highest ratio of their debts and the national income also gains high benefits from that.

In this study، the researcher demonstrates the reality of the pre-prepared reorganisation plan and its relationship with the preliminary stage and the usual reorganisation plan، as well as the role of each party in this plan، based on three requirements. The first requirement addressed the position of the pre-prepared reorganisation plan in relation to the preliminary stage. The second requirement addressed the overlap between the pre-prepared reorganisation plan and the usual reorganisation. In contrast، the third requirement addressed the situations in which the pre-prepared reorganisation plan is applied. The study concludes with several key findings، including the importance of insolvency law in protecting the rights and interests of debtors that have been overlooked by the cancelled insolvency provisions، as well as in preserving the rights of creditors and the national economy. The study recommends paying more attention to qualifying the insolvency agent due to his prominent role in the pre-prepared reorganisation plan. The study also presents additional results and recommendations، which will be discussed in this section.