Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Division 3 - Restructuring plan  

Subdivision C - Accepting a proposal for a restructuring plan  

REGULATION 5.3B.29   EFFECT OF RESTRUCTURING PLAN  

5.3B.29(1)    
This regulation applies on and after the day on which a restructuring plan is made in relation to a company.

5.3B.29(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.

5.3B.29(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.

5.3B.29(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) .

5.3B.29(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) .

5.3B.29(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 )).