In force2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 8 · Winding Up

187. Arrangement when binding on creditors

(1)

Any arrangement entered into between a company about to be or in the course of being wound up and its creditors is, subject to the right of appeal under this section, binding on the company if sanctioned by a special resolution, and on the creditors if acceded to by 75% in value and 50% in number of the creditors, every creditor for under $500 being reckoned in value only.

(2)

A creditor must be accounted a creditor for value for such sum as upon an account fairly stated appears to be the balance due to the creditor, after allowing —

(a)

the value of security or liens held by the creditor; and

(b)

the amount of any debt or set-off owing by the creditor to the company.

(3)

Any dispute with regard to the value of any such security or lien or the amount of such debt or set-off may be settled by the Court on the application of the company, the liquidator or the creditor.

(4)

Any creditor or contributory may, within 3 weeks after the completion of the arrangement, appeal to the Court against the arrangement, and the Court may upon the appeal, as it thinks just, amend, vary or confirm the arrangement.