CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT  

Division 10 - Execution and effect of deed of company arrangement  

SECTION 444F   COURT MAY LIMIT RIGHTS OF SECURED CREDITOR OR OWNER OR LESSOR  

444F(1)  
This section applies where:


(a) at a meeting convened under section 439A , a company ' s creditors have resolved that the company execute a deed of company arrangement; or


(b) a company has executed such a deed.

444F(2)  


Subject to subsection 441A(3), the Court may order a secured creditor of the company not to realise or otherwise deal with the security interest, except as permitted by the order.

444F(3)  
The Court may only make an order under subsection (2) if satisfied that:


(a) for the creditor to realise or otherwise deal with the security interest would have a material adverse effect on achieving the purposes of the deed; and


(b) having regard to:


(i) the terms of the deed; and

(ii) the terms of the order; and

(iii) any other relevant matter;
the creditor ' s interests will be adequately protected.

444F(4)  
The Court may order the owner or lessor of property that is used or occupied by, or is in the possession of, the company not to take possession of the property or otherwise recover it.

444F(4A)  


Subsection (4) does not apply in relation to PPSA retention of title property of the company.

444F(5)  
The Court may only make an order under subsection (4) if satisfied that:


(a) for the owner or lessor to take possession of the property or otherwise recover it would have a material adverse effect on achieving the purposes of the deed; and


(b) having regard to:


(i) the terms of the deed; and

(ii) the terms of the order; and

(iii) any other relevant matter;
the interests of the owner or lessor will be adequately protected.

444F(6)  
An order under this section may be made subject to conditions.

444F(7)  
An order under this section may only be made on the application of:


(a) if paragraph (1)(a) applies - the administrator of the company; or


(b) if paragraph (1)(b) applies - the deed ' s administrator.


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