Secured creditors are subject to similar moratorium provisions as applies in a voluntary administration and will only be bound by a restructuring plan to the extent they agree to be bound, under regulation 5.3B.29. However, any shortfall a secured creditor sustains will be covered by the restructuring plan and again they are bound by it.
Related creditors do not get to vote on the plan. However, they receive a distribution under the restructuring plan.
Disclaimer
The enclosed information is of necessity a brief overview and it is not intended that readers should rely wholly on the information contained herein. No warranty express or implied is given in respect of the information provided and accordingly no responsibility is taken by Worrells or any member of the firm for any loss resulting from any error or omission contained within this fact sheet.
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