| Commentary

57.1 General

| Commentary

D: CHALLENGE TO ARRANGEMENTS

57 Challenge to creditors’ decision

57.1 General

An application to the court to challenge the creditors’ approval of an individual voluntary arrangement may be made on one or both of two grounds, namely:

  1. 57.1.1

        Ground (a): that a voluntary arrangement approved by a decision of the debtor’s creditors pursuant to Section 257 unfairly prejudices the interests of a creditor of the debtor1;

  2. 57.1.2

        Ground (b): that there has been some material irregularity in relation to a creditors’ decision procedure instigated under Section 2572.

An approval given by a decision procedure is not invalidated by any

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