Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation applies on and after the day on which a restructuring plan is made in relation to a company.
(2) The plan is binding on:
(a) subject to subregulations (3) and (4)--a creditor of the company to the extent that the creditor has an admissible debt or claim in relation to the plan; and
(b) the company; and
(c) the company's officers and members; and
(d) the restructuring practitioner for the plan.
(3) If a creditor of the company is a secured creditor, the plan is binding on the creditor:
(a) if the value of the creditor's security interest is less than the value of the creditor's admissible debts or claims--only to the extent of the difference between the values; and
(b) if the value of the creditor's security interest is equal to or more than the value of the creditor's admissible debts or claims--only to the extent that the creditor consents to be bound by the plan.
(4) The fact that a restructuring plan has been made does not prevent a secured creditor from realising or otherwise dealing with the security interest, unless:
(a) the secured creditor accepted the proposal to make the plan and the plan prevents the secured creditor from doing so; or
(b) the Court so orders under subregulation 5.3B.64(2).
(5) The fact that a restructuring plan has been made does not affect a right that an owner or lessor of property has in relation to that property, unless:
(a) the owner or lessor accepted the proposal to make the plan and the plan affects that right; or
(b) the Court so orders under subregulation 5.3B.64(4).
(6) Subregulation (5) does not apply in relation to an owner or lessor of PPSA retention of title property of the company.
Note: Subregulation (3) applies in relation to an owner or lessor of PPSA retention of title property of the company. Such an owner or lessor is a secured creditor of the company (see section 51F of the Act (meaning of PPSA retention of title property )).