Article 174. Extension of Terms for Procedure of External Management of City-Forming Enterprise and Equivalent Enterprise

The external administration of a city-forming enterprise or an equivalent enterprise may, upon the application of the local executive authority, be extended by the court for a period of up to one year.

The basis for extending the procedure of external management for the period provided for by part one of this article may be a plan for the financial recovery of the city-forming and equivalent enterprise by investing in its activities, job placing employees, creating new jobs and other ways to restore the debtor's solvency.

Upon the application of the relevant local executive authority, ministry, agency, or economic administration body, and subject to the provision of a guarantee for the debtorʼs monetary obligations and/or tax and fee liabilities, the period of external administration of a city-forming enterprise or an equivalent enterprise may be extended for up to five years. In such a case, the debtor and its guarantor shall commence settlements with creditors no later than within the time limits prescribed by this Article.

Failure to comply with the requirements provided for by part three of this article shall be the basis for declaring the debtor bankrupt and initiating liquidation proceedings.