Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Division 3 - Restructuring plan  

Subdivision B - Proposing a restructuring plan  

REGULATION 5.3B.22   CREDITORS MAY DISPUTE SCHEDULE OF DEBTS AND CLAIMS BEFORE RESTRUCTURING PLAN IS MADE  

5.3B.22(1)    
This regulation applies in relation to a person if:

(a)    the person is a creditor of a company that is proposing to make a restructuring plan; and

(b)    the plan has not been made; and

(c)    the person disagrees with the schedule of debts and claims included with the company ' s restructuring proposal statement because:

(i) the person ' s admissible debts or claims are not specified; or

(ii) the company ' s assessment of the person ' s admissible debts or claims is incorrect; or

(iii) the person is incorrectly specified as an excluded creditor.

Creditor may notify restructuring practitioner of disagreement

5.3B.22(2)    
The person may give written notice of the disagreement to the company ' s restructuring practitioner.

5.3B.22(3)    
The notice:

(a)    may be given:

(i) if the person received a copy of the plan - within 5 business days after the day on which the person receives the plan; or

(ii) if the person otherwise became aware of the plan - within 5 business days after the day on which the person becomes so aware; or

(iii) after the period specified in subparagraph (i) or (ii), if the notice includes a statement setting out the person ' s reasons for not giving the notice within that period; and

(b)    if the disagreement relates to the person ' s admissible debts or claims:

(i) must include detailed particulars of the debt or claim sought to be proved; and

(ii) in the case of a debt, must include a statement of account; and

(iii) must specify the vouchers (if any) by which the statement can be substantiated; and

(c)    if the disagreement relates to the person ' s status as an excluded creditor - must include detail sufficient to resolve the disagreement.

5.3B.22(4)    
The restructuring practitioner may, after receiving the notice, request that the person or the directors of the company:

(a)    give the restructuring practitioner information about the company ' s business, property, affairs and financial circumstances; and

(b)    verify the information by statutory declaration.

Restructuring practitioner may refuse to consider disagreement

5.3B.22(5)    
If the notice is given after the period specified in subparagraph (3)(a)(i) or (ii), the restructuring practitioner may refuse to consider the disagreement if the restructuring practitioner is satisfied that the person did not take all reasonable steps to give notice within that period.

5.3B.22(6)    
If the restructuring practitioner refuses to consider the disagreement:

(a)    the restructuring practitioner is taken to have recommended that the schedule of debts and claims not be varied; and

(b)    the restructuring practitioner must give written notice to the company and the person setting out the restructuring practitioner ' s reasons for the refusal; and

(c)    subregulation (7) does not apply.

Restructuring practitioner must resolve disagreement as soon as practicable

5.3B.22(7)    
If:

(a)    a person gives notice under subregulation (2) of a disagreement to the restructuring practitioner for a company; and

(b)    the restructuring practitioner has not refused to consider the disagreement under subregulation (5);

the restructuring practitioner must:

(c)    give written notice to the company and the person:

(i) setting out the restructuring practitioner ' s recommendations for resolving the disagreement; and

(ii) giving reasons for the recommendations; and

(d)    if the restructuring practitioner recommends that the schedule of debts and claims be varied and is of the opinion that the variation is significant - give written notice to the company and as many of the company ' s creditors as reasonably practicable:

(i) stating that fact; and

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

5.3B.22(8)    
If the restructuring practitioner recommends that the schedule of debts and claims be varied, the company must vary the schedule in accordance with the recommendation as soon as practicable.