Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Division 6 - Powers of Court  

REGULATION 5.3B.60   COURT MAY MAKE ORDERS IN RELATION TO CREDITOR DISPUTES BEFORE RESTRUCTURING PLAN IS MADE  

5.3B.60(1)    
This regulation applies if:

(a)    a company proposes to make a restructuring plan; and

(b)    a person notifies the company ' s restructuring practitioner under subregulation 5.3B.22(2) that the person disagrees with the schedule of debts and claims included with the company ' s restructuring proposal statement; and

(c)    the restructuring practitioner:

(i) refuses to consider the disagreement under subregulation 5.3B.22(5) ; or

(ii) makes, or refuses to make, a recommendation under subregulation 5.3B.22(7) to vary the schedule of debts and claims.

5.3B.60(2)    
The Court may, on the application of the company or a creditor of the company, make one or more of the following orders:

(a)    that the restructuring practitioner consider the disagreement and make a recommendation in accordance with subregulation 5.3B.22(7) ;

(b)    that the schedule of debts and claims be varied as set out in the order;

(c)    that the acceptance period for the proposal to make the restructuring plan be extended.

5.3B.60(3)    
If the Court makes an order under subregulation (2), the restructuring practitioner must, within 2 business days after the day on which the order is made:

(a)    lodge with ASIC notice in the prescribed form (if any):

(i) setting out the terms of the order; and

(ii) outlining the creditors ' rights under regulation 5.3B.23 ; and

(b)    give a copy of the notice to as many of the company ' s creditors as reasonably practicable.

Note: Failure to comply with this subregulation is an offence: see subsection 1311(1) of the Act.