The privacy of legal regulation for usual and pre-prepared reregulation plans during the reregulation stage to an insolvent public shareholding company according to the Jordanian insolvency law

Abstract

         There is a type of privacy for the provisions regulating the suggestion of rescue solutions in the insolvency stages of an insolvent public shareholding company, in addition to the privacy of the legal provisions that regulate implementing the content of usual and pre-prepared reregulation plans, in case the insolvent debtor is a public shareholding company.

         When such a company presents a pre-prepared reregulation plan- in case of imminent or current insolvency, where it requested insolvency declaration and presented a pre-prepared plan- this procedure requires accepting the presented plan by the public shareholding committee in the company.

         However, after announcing the insolvency of the public shareholding company, the legislator excluded the authority of the public shareholding committee in the company in making the decisions related to introducing the plan and implementing its content, such as structuring the company's economic activity or restructuring debt.

         Also, implementing the content of the organizational plan is subjected to the provisions of insolvency law, in terms of the provisions of voting and objection, and the applicable provisions while implementing its content.

The study problem:

         The Jordanian insolvency law introduced a legislative philosophy that aims to enhance the status of the insolvent debtor, according to certain stages dedicated to improve the debtor's financial status.

This shall be done under a legal protection and judicial surveillance that ensure rebalancing the interests of insolvent debtor and creditors, and maintaining the sustainability of economic activity as much as possible.

         When considering the stages of insolvency experienced by insolvent debtors, we can notice a certain type of privacy concerning the provisions regulating the suggestion of solutions during these stages, in case the insolvent debtor is a public shareholding company.

         Indeed, these stages include solutions and alternatives to help the insolvent company overcome fiscal deficit during insolvency procedures, and those solutions vary according to the provisions regulating them; some of them are subjected to the structure stated in insolvency law, while others are subjected to corporates' law. This case depends on the stage for which the suggestion was set, and the suggestion included in the rescue plan.