Commonwealth Consolidated Regulations

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When Court may terminate restructuring plan

  (1)   The Court may make an order terminating a company's restructuring plan if the Court is satisfied that:

  (a)   information about the company's business, property, affairs or financial circumstances that:

  (i)   was false or misleading; and

  (ii)   can reasonably be expected to have been material to the affected creditors in deciding whether to accept the plan;

    was contained in the plan or the restructuring proposal statement that accompanied the plan; or

  (b)   there was an omission from the plan or statement and the omission can reasonably be expected to have been material to such creditors in so deciding; or

  (c)   there has been a material contravention of the plan by a person bound by the plan; or

  (d)   effect cannot be given to the plan without injustice or undue delay; or

  (e)   the plan or a provision of it is, an act or omission done or made under the plan was, or an act or omission proposed to be so done or made would be contrary to the interests of the creditors of the company as a whole; or

  (f)   the plan should be terminated for some other reason.

  (2)   The Court may make an order under this regulation:

  (a)   on its own initiative; or

  (b)   on the application of:

  (i)   the company; or

  (ii)   an affected creditor; or

  (iii)   the restructuring practitioner for the company or for the plan; or

  (iv)   ASIC.

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