When a #restructuring proposal is proposed the #SBR must forward the plan together with a schedule of debts and claims to the affected creditors. If a creditor disputes or is omitted from the schedule, they have just 5 business days from notice or becoming aware of the plan to notify the SBR of the issue. It is not clear how an omitted creditor could give notice in time.
The SBR may refuse to consider a notice given out of time. Where a notice is in time, the SBR can vary the schedule and notify affected creditors who then have an opportunity to change their vote. The schedule cannot be changed after the plan is accepted.
Any eligible creditor omitted on the schedule is nevertheless bound by the plan and its debt discharged without any dividend.
#ARITA’s submissions for short term SBR reform calls for a simple debt verification process by including a claim form or proof of debt with the initial notice to creditors which would give creditors 20 business days before the schedule is created to confirm their debt. As notice of appointment is already sent an additional form would have virtually no cost and I believe would improve creditors’ opportunity to participate in the restructuring.
Commentaires