Judicial principles and studies
Powers of the Insolvency Agent and Their Role After Approval of a Reorganization Plan
A brief summary outlining the continued role of the insolvency agent in overseeing implementation of the reorganization plan, the obligation to request liquidation upon debtor breach under Article 98, and limits on the debtor’s role in debt-list adjustments and court representation.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
This summary addresses the position of the insolvency agent after court approval of a reorganization plan, focusing on the agent’s responsibilities in overseeing plan implementation, organizing debts, and the debtor’s limited role in debt-list adjustments and court representation.
Summary
- The status of the insolvency agent continues throughout the preliminary insolvency, reorganization, and liquidation phases, with ongoing oversight of implementing the reorganization plan’s outcomes alongside the debtor to ensure fulfillment of agreed obligations to insolvency creditors. - If the debtor fails to perform obligations under the reorganization plan, the insolvency agent must request liquidation of the debtor in accordance with Article 98 of the Insolvency Law. - Court approval of the reorganization plan does not extinguish the agent’s litigation standing or transfer it to the debtor; objections concerning amendments to the creditors’ list relate to actions by the insolvency agent and their compliance with Articles 62 and 64, and the debtor lacks a legal role to intervene in those procedures. - Continued appearance by a lawyer on behalf of the insolvent company, based on a power signed by the authorized signatory and the insolvency agent after plan approval, is valid; a power signed solely by the authorized signatory is also effective under Article 17(d+h), and a jointly signed power by both parties is likewise valid.
Practical significance
- Debt organization and monitoring implementation of the reorganization plan remain core functions of the insolvency agent; claims and challenges related to these matters should be directed at the agent rather than the insolvent debtor. - Practically, powers of attorney meeting the described conditions need not be reissued after plan approval, while any debtor breach triggers liquidation procedures under Article 98. This content is an educational summary only; it is not a judicial text and does not constitute legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.