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Part 2 · Opening of insolvency proceedings. Recognised assets and parties to proceedings  ›  Division 1 · Conditions and procedure for opening of proceedings › Section 22

Legal status of provisional insolvency administrator

(1) If the insolvency court designates a provisional insolvency administrator and imposes a general prohibition of disposal on the debtor, the right to manage and transfer the debtor’s property is vested in the provisional insolvency administrator. In such cases the provisional insolvency administrator is required to

1.  see to the arrestment and preservation of the debtor’s property;

2.  continue an enterprise operated by the debtor until the insolvency court decides on the opening of the insolvency proceedings, unless the insolvency court consents to a close-down of such enterprise in order to avoid a considerable loss of the debtor’s property;

3.  verify whether the debtor’s property will cover the costs of the insolvency proceedings; in addition, the insolvency court may charge the insolvency administrator with verifying, as an expert, whether a reason to open insolvency proceedings exists and which prospects exist for the continuation of the debtor’s enterprise.

(2) If the insolvency court designates a provisional insolvency administrator without imposing a general prohibition of disposal on the debtor, the court determines the duties of such provisional insolvency administrator. Such duties may not exceed the duties under subsection (1) sentence 2.

(3) The provisional insolvency administrator is entitled to enter the debtor’s business premises and to investigate there. The debtor is to grant the provisional insolvency administrator inspection of the debtor’s books and business documents. The debtor is required to disclose to the provisional insolvency administrator any necessary information and support the provisional insolvency administrator in the fulfilment of his or her duties; sections 97, 98 and 101 (1) sentences 1 and 2 and (2) apply accordingly.

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