EGYPT Law and Practice Contributed by: Sherif El Hosseny, Malak El Amiry and Farida Degheidy, Matouk Bassiouny & Hennawy
or IDERA that includes a proxy and authorisation to export the aircraft. Self-remedy measures are not permissible. There are no additional actions that can be done by the lessor, owner or mortgagor at the time of lease negotiations to ensure that the aircraft is exported promptly except for the obtaining of a DPOA and IDERA (please see 2.10 Cape Town Convention and Others ). Enforcement of a mortgage must comply with Egyp - tian law, which obliges the enforcer to sell the aircraft through a public auction administered through the court. The aircraft does not need to be located in Egypt at the time of deregistration.
deregistration. A recent hurdle experienced was that the ECAA does not allow for the grounding of an air - craft despite the ECAA honouring the filed IDERA or DPOA. So, the aircraft would continue operation up
until the deregistration is imminent. 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and
Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations The bankruptcy regime has been largely consistent since 1999, following the arrival of the Commercial Code. It recognises bankruptcies, insolvencies and liquidations. In 2018, however, the bankruptcy regime introduced a new section on restructuring and reorganisation. This section provides for restructuring through put - ting in place a plan to reorganise a trader’s financial and administrative business, the means to recover from a state of financial and administrative distress, a scheme to pay off its debts and the proposed sources of funding. This can be done in several ways, including the re-evaluation of assets, debt restructuring, includ - ing state debt, capital increase, increased internal cash flow, and reduction of external cash flow. 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership The term “trader” is defined in the Commercial Code as ”whoever exercises by way of profession in its name or for its account a commercial activity”. Such definition also includes all companies formed under the companies’ laws regardless of the purpose of their establishment. A trader shall be considered in a state of bankruptcy, as declared through a court order, if it stops paying its commercial debts following distress in its financial condition (ie, becomes unable to pay). The law does not specify what could be deemed as instability of a company leading to financial distress. Therefore, the court reviews all the circumstances surrounding the debtor prior to issuing its judgment, taking into con - sideration the debtor’s future resources, the debtor’s responsibility in causing such distress, and the credi - tors’ interests.
2.8.12 Aircraft Export Permits/Licences Aircraft export permits/licences are issued.
An export permit/licence request/application has a limited validity period. If the aircraft is not exported within such period, a new licence must be obtained. It is also important to note that if there are any out - standing charges against the aircraft to Egyptian state-owned companies in the aviation industry, the aircraft may not be issued an export licence. An export permit/licence cannot be granted in advance. 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft The costs with respect to the export of an aircraft are minimal. The fees of agents on the ground may need to be considered. 2.8.14 Practical Issues Related to Deregistration of Aircraft Deregistration of aircraft is not a smooth process, especially if the lessee is not cooperative. Moreover, if the solvency status of the lessee is in question, fur - ther hurdles may be put in place since deregistration may be stopped or at least delayed for state creditors to collect their outstanding debt as a prerequisite to
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