The basis for the restructuring practitioner’s remuneration is:
A fixed fee for the proposal phase, which directors resolve prior to the appointment.
A fixed percentage of the recoveries from the plan, which creditors approve.
The fixed fee covers the following duties:
helping determine eligibility
supporting the company to develop its plan and review its financial affairs
certifying the plan for creditors to vote on.
Referral fees are prohibited in all other types of formal insolvency; however, they are impliedly permitted by regulation 5.3B.16.
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