Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 5.3B.29

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

  (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.

  (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.

  (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)   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).

  (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 )).