Corporations Regulations 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.3B - RESTRUCTURING OF A COMPANY  

Division 6 - Powers of Court  

REGULATION 5.3B.64   COURT MAY LIMIT RIGHTS OF SECURED CREDITOR OR OWNER OR LESSOR  

5.3B.64(1)    
This regulation applies where:

(a)    a company is under restructuring; or

(b)    a company makes a restructuring plan that has not terminated.

5.3B.64(2)    
Subject to subsection 454C(3) of the Act, the Court may order a secured creditor of the company not to realise or otherwise deal with the security interest, except as permitted by the order.

5.3B.64(3)    
The Court may only make an order under subregulation (2) if satisfied that:

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

(b)    having regard to:

(i) the terms of the plan; and

(ii) the terms of the order; and

(iii) any other relevant matter;

the creditor ' s interests will be adequately protected.

5.3B.64(4)    
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.

5.3B.64(5)    
Subregulation (4) does not apply in relation to PPSA retention of title property of the company.

5.3B.64(6)    
The Court may only make an order under subregulation (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 plan; and

(b)    having regard to:

(i) the terms of the plan; and

(ii) the terms of the order; and

(iii) any other relevant matter;

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

5.3B.64(7)    
An order under this regulation may be made subject to conditions.

5.3B.64(8)    
An order under this regulation may only be made on the application of:

(a)    if paragraph (1)(a) applies - the restructuring practitioner for the company; or

(b)    if paragraph (1)(b) applies - the restructuring practitioner for the plan.