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 444F   COURT MAY LIMIT RIGHTS OF SECURED CREDITOR OR OWNER OR LESSOR  

444F(1)  [Where company has executed deed]  

This section applies where:

(a)  it is proposed that a company execute a deed of company arrangement; or

(b)  a company has executed such a deed.

444F(2)  [Secured creditors]  

Subject to subsection 441A(3), the Court may order a secured creditor of the company not to realise or otherwise deal with the security, except as permitted by the order.

444F(3)  [Protection of secured creditors]  

The Court may only make an order under subsection (2) if satisfied that:

(a)  for the creditor to realise or otherwise deal with the security would have a material adverse effect on achieving the purposes of the deed; and

(b)  having regard to:

(i) the terms of the deed; and

(ii) the terms of the order; and

(iii) any other relevant matter;

the creditor's interests will be adequately protected.

444F(4)  [Owners and lessors]  

The Court may order the owner or lessor of property that is used or occupied by, or is in the possession of, the company not to take possession of the property or otherwise recover it.

444F(5)  [Protection of interests of owners and lessors]  

The Court may only make an order under subsection (4) if satisfied that:

(a)  for the owner or lessor to take possession of the property or otherwise recover it would have a material adverse effect on achieving the purposes of the deed; and

(b)  having regard to:

(i) the terms of the deed; and

(ii) the terms of the order; and

(iii) any other relevant matter;

the interests of the owner or lessor will be adequately protected.

444F(6)  [Order subject to conditions]  

An order under this section may be made subject to conditions.

444F(7)  [Who may apply for order]  

An order under this section may only be made on the application of:

(a)  if paragraph (1)(a) applies - the administrator of the company; or

(b)  if paragraph (1)(b) applies - the deed's administrator.