Commonwealth Consolidated Regulations

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Court may make orders in relation to creditor disputes before restructuring plan is made

             (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.

             (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.

             (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.

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