Enter to open, tab to navigate, enter to select
Restructuring plan
Practical Law ANZ Glossary w-029-7256 (Approx. 3 pages)
Glossary
Restructuring plan
A plan for the restructuring of a company made under Part 5.3B of the Corporations Act 2001 (Cth) (CA 2001).
The plan must:
- Identify the company's property that is to be dealt with by the plan and how that property is going to be dealt with (for example, it could specify how creditors will be repaid from the company's cash or other assets as a proportion of the debt owing to them).
- Provide details of any asset sales proposed to be undertaken (method for valuation and sale).
- Provide for the restructuring practitioner's remuneration.
- Specify the date on which it was executed by the company.
- If the plan is conditional on the occurrence of an event to occur after it is accepted by creditors, particularise the event (which cannot be more than ten business days after the plan is accepted).
Certain other information may be included in the plan (such as identifying persons who are authorised to deal with items of company property and other information relating to the company's financial affairs) but it is not mandatory to do so.
In addition to the matters listed above, a restructuring plan is taken to include the standard terms prescribed by regulation 5.3B.27 of the CR 2001.
The Australian Securities and Investments Commission provides a template restructuring plan for use by practitioners on its website.
The company's directors and the restructuring practitioner work together to develop a restructuring plan to propose to the company's creditors.
For further detailed guidance on small business restructuring under Part 5.3B of the CA 2001, see: