Directors can continue to trade in their company’s normal course of business (subject to certain control and restrictions) while undergoing the restructuring process.
The process can take up to 35 business days and is broken down into two phases:
The proposal phase: Directors and external practitioner work on plan for up to 20 business days.
The acceptance phase: Creditors have up to 15 business days to vote thereby approving or rejecting the plan.
A plan is approved when a majority in value of voting creditors vote in favour, however related creditors are excluded from voting. A range of conditions apply to how the restructuring plan is “effectuated” and terminated following any contraventions.