Cap. 631 Art. 34Pre-emptive termination of standard preventive restructuring.

(1) If, at any time during which a standard preventive restructuring order is in force, it results to the insolvency practitioner:

(a) that, after consulting with the officials of the debtor, the affairs of the debtor have improved to the extent that the debtor is no longer exposed to a likelihood of insolvency;

(b) that, after consulting with the officials of the debtor, the affairs of the debtor have deteriorated to the extent that the debtor does not have reasonable prospects of economic viability; or

(c) that, after consulting with the officials of the debtor and any creditors of the debtor as the insolvency practitioner may deem reasonably appropriate, the insolvency practitioner has established that a significant proportion of the debtor’s creditors do not support the continuation of negotiations and shall prevent the debtor from obtaining the approvals necessary for the confirmation of a restructuring plan, the insolvency practitioner shall forthwith make a request by application to the Court for the termination of the preventive restructuring procedure, containing detailed and comprehensive reasons therefor.

(2) At any time during which a standard preventive restructuring order is in force, the officials of the debtor, if they are satisfied that the affairs of the debtor have improved to the extent that the debtor is no longer exposed to a likelihood of insolvency or convinced that the affairs of the debtor have deteriorated to the extent that the debtor does not have reasonable prospects of economic viability, may submit a request by application to the Court confirming that they are so satisfied or convinced, and requesting that the Court issue an order for the termination of the preventive restructuring procedures, provided that the Court shall not without just cause proceed to make an order acceding to or declining the application without having first heard the insolvency practitioner, insofar as reasonably possible.

(3) At any time during which a standard preventive restructuring order is in force, any creditor or creditors of the debtor, if they believe that there would be no purpose to the continuation of standard preventive restructuring procedures on the basis:

(a) that the debtor is no longer exposed to a likelihood of insolvency or no longer has reasonable prospects of economic viability; or

(b) that a significant proportion of the debtor’s creditors do not support the continuation of negotiations and shall not provide the approvals necessary for the confirmation of a restructuring plan, may, after informing the insolvency practitioner, submit an application to the Court requesting it to issue an order for the termination of the preventive restructuring procedures, provided that the Court shall not proceed to make an order acceding to or declining the application without having first heard the insolvency practitioner, insofar as reasonably possible.

(4) In the event that the Court accedes to an application for the pre-emptive termination of a standard preventive restructuring order in terms of this article, it shall make such provisions and conditions, as it may consider necessary in the circumstances of the case.