Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Note: This Part does not apply to a CCIV or a sub-fund of a CCIV: see Division 4 of Part 8B.6 .

Division 7 - Other matters  

SECTION 458G   COURT ORDER THAT COMPANY NOT ELIGIBLE FOR TEMPORARY RESTRUCTURING RELIEF  

458G(1)    
The Court may order that a company is not eligible for temporary restructuring relief if there are not reasonable grounds to believe any of the following:

(a)    the company is insolvent, or is likely to become insolvent before the declaration under paragraph 458E(1)(a) expires;

(b)    the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on any day after notice of the declaration made under subparagraph 458E(1)(a)(i) is published on which the declaration has not expired;

(c)    the company has taken all reasonable steps to appoint a restructuring practitioner;

(d)    the company will take all reasonable steps to appoint a restructuring practitioner before the expiry of the declaration made by the company under subsection 458E(1) .

458G(2)    
The Court may make an order under subsection (1):

(a)    on the application of:

(i) a creditor of the company; or

(ii) ASIC; or

(b)    on the Court ' s own initiative.

458G(3)    
If the Court makes an order in relation to a company under subsection (1), the directors of the company must within 5 business days after the order is made:

(a)    publish notice of the order in the prescribed manner; and

(b)    give ASIC a copy of the order.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

458G(4)    
Nothing in this section limits the power of the Court to make an order that a company is not eligible for temporary restructuring relief for any other reason.