THE CORPORATIONS LAW

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 444D   EFFECT OF DEED ON CREDITORS  

444D(1)  [Deed binds creditors]  

A deed of company arrangement binds all creditors of the company, so far as concerns claims arising on or before the day specified in the deed under paragraph 444A(4)(i).

444D(2)  [Realisation of securities]  

Subsection (1) does not prevent a secured creditor from realising or otherwise dealing with the security, except so far as:

(a)  the deed so provides in relation to a secured creditor who voted in favour of the resolution of creditors because of which the company executed the deed; or

(b)  the Court orders under subsection 444F(2).

444D(3)  [Owners and lessors of property]  

Subsection (1) does not affect a right that an owner or lessor of property has in relation to that property, except so far as:

(a)  the deed so provides in relation to an owner or lessor of property who voted in favour of the resolution of creditors because of which the company executed the deed; or

(b)  the Court orders under subsection 444F(4).