Cap. 631 Art. 13Appointment of alternative insolvency practitioner.

(1) Any creditor of the debtor may, at any time, make an application to the Court for the appointment of an alternative insolvency practitioner, where the creditor:

(a) has reasonable grounds to believe that the insolvency practitioner is subject to a conflict of interest or is otherwise unable to perform the functions thereof impartially; or

(b) is of the opinion that the insolvency practitioner does not have the specific competence, experience, or resources required to adequately participate in the preventive restructuring procedures.

(2) Where an application is made in terms of sub-article (1), the following documents shall be annexed thereto:

(a) the written confirmation of the proposed alternative insolvency practitioner, that he is available and prepared to participate in the preventive restructuring procedures in terms of the preventive restructuring order;

(b) a preventive restructuring filing declaration made out in the form set out in the First Schedule; and

(c) the written confirmation of not less than fifty per cent (50%) of the debtor’s creditors as listed in article 10(f), by reference to both the number of individual creditors and the economic value of their claims, that such creditors approve of the appointment of the alternative insolvency practitioner.

(3) Where the Court, after hearing the insolvency practitioner, is satisfied that the requirements of sub-article (1) subsist, the Court shall accede to the application submitted in terms of this article and shall issue an order immediately terminating the appointment of the insolvency practitioner and confirming the appointment of the alternative insolvency practitioner:

Provided that the Court shall cause a copy of the order to be delivered to the Registrar of Courts and the competent authority, and the latter shall be required to determine what action, if any, may be warranted in the circumstances with respect to the insolvency practitioner.

(4) The filing of an application in terms of this article shall not have any suspensive or negatory effect on the debtor’s status as being under preventive restructuring procedures, or on the protections granted to the debtor by virtue of being admitted to preventive restructuring procedures, or on any action taken by the insolvency practitioner prior to the date of issue of the order referred to in sub-article (3).

(5) Where, within the context of a preventive restructuring procedure, the insolvency practitioner is no longer able to execute the responsibilities imposed in terms of this Act, whether as a result of resignation, interdiction, incapacitation, death, or otherwise, the debtor shall, within forty-eight (48) hours of becoming aware of such fact, by application to the court, request the appointment of an alternative insolvency practitioner:

Provided that this application shall, mutatis mutandis, comply with the requirements of sub-articles (2)(a) and (2)(b):

Provided further that the debtor shall be prohibited, without the express prior approval of the Court, from taking any action, the performance of which shall require the involvement of the insolvency practitioner in terms of this Act or as the Court may otherwise stipulate in the preventive restructuring order issued in terms of article 11, until a new insolvency practitioner has been confirmed by the Court.