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calendar days each, but without exceeding a total time period of 365 calendar days fromthe date of publication of the judgment.In order for an agreement to be effective, it must be signed by the merchant andacknowledged creditors representing more than 50 percent of the sum of:a) The amount that has been acknowledged of the totality of the at-large creditors; andb) The amount acknowledged of secured creditors or those with a property guaranteethat sign the agreement.As long as the agreement satisfies the legal requirements, the judge reviewing the mattermust approve it. The agreement will bind all of the acknowledged creditors, exceptfor the acknowledged creditors with a property guarantee who have not signed theagreement. These creditors can proceed to foreclose on their credits, which underscoresthat a property guarantee such as a pledge or mortgage places the creditor in a veryadvantageous position with respect to other creditors who lack such a guarantee or areunsecured creditors.In very general terms, from the point at which the business reorganization is declareduntil the conclusion of the conciliation stage, no seizure or foreclosure order can beenforced on the merchant’s assets, except for debts owed to employees for salaries orwages and indemnifications corresponding to the two preceding years. Unfortunately,this exception permits some merchants to attempt to remove some or all of their assetsfrom the reorganization process through secret agreements with their employees.The approval of an agreement will terminate the reorganization proceeding. The merchant’sbreach of the agreement will trigger the re-initiation of the reorganization process.5.2. Bankruptcy325Insolvency and BankruptcyIf the conciliation period lapses without an agreement being reached or if the merchanthimself so petitions, the judge handling the case must issue a judgment in which themerchant is declared in bankruptcy, the purpose of which will be to sell the merchant’sbusiness or the production units or assets of the business in order to pay the creditorsthat have been acknowledged in the conciliation stage.The bankruptcy judgment will compel the merchant to deliver the possession andadministration of the assets and rights that make up the merchant’s estate to the designatedtrustee and will prohibit creditors from paying any amount, under penalty of doublepayment. From the date of the bankruptcy judgment, any act by the merchant willbe null and void by operation of law.The bankruptcy trustee will have 90 days after taking possession of the business toprepare and deliver the following documentation to the judge:a) A statement regarding the merchant’s accounting records;