The following Restructuring & Insolvency guidance note Produced in partnership with South Square and BDO LLP provides comprehensive and up to date legal information covering:
It is the creditors who decided whether, and if so to what extent, the individual or corporate debtor’s proposal should be accepted. Physical meetings are no longer the default decision-making procedure and the nominee may choose a qualifying decision procedure to obtain a creditor’s decision on the proposal. These are set out in IR 2016, SI 2016/1024, Part 15. The relevant decision procedures or meetings will be under the control of the convener or chair who is invariably the nominee, unless the latter is unable to attend when a replacement will attend on their behalf.
Once the court has received the nominee’s report, it must consider whether the creditors should consider and, if possible, approve the proposal. In that event, the court will direct that the interim order be extended for such judicial period as may be required in order to cover that eventuality (IA 1986, s 256(5)).
The nominee must deliver a notice to each creditor (other than those who have opted out) complying with IR 2016, SI 2016/1024, r 15.8. The notice must:
describe the decision procedure to be used by the convener, and give arrangements, including venue, the decision date and various other requirements set out in IR 2016, SI 2016/1024, r 15.8
provide a statement of the effects
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