Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 5.3B.20

  (1)   A company's proposal to make a restructuring plan lapses if:

  (a)   the restructuring plan is not accepted in accordance with subregulation   5.3B.25(1); or

  (b)   the company's restructuring practitioner cancels the proposal to make the plan in accordance with subregulation   (2).

  (2)   The restructuring practitioner for a company may cancel the company's proposal to make a restructuring plan if, before the restructuring plan is made, the restructuring practitioner:

  (a)   becomes aware that the information in the plan is incomplete or inaccurate, and has reasonable grounds to believe that, if the plan is made, the matter to which the incompleteness or inaccuracy relates is likely to affect the company's ability to meet its obligations under the plan; or

  (b)   becomes aware that one or more affected creditors were not disclosed in the company's restructuring proposal statement; or

  (c)   becomes aware that the company's restructuring proposal statement was deficient because it omitted a material particular or because it was incorrect in a material particular; or

  (d)   becomes aware of a material change in the company's circumstances that:

  (i)   was not foreshadowed in the company's restructuring proposal statement; and

  (ii)   in the opinion of the restructuring practitioner, is capable of affecting an affected creditor's decision whether or not to accept the restructuring plan.