Cap. 631 Art. 43Confirmation of restructuring plan by the Court.

(1) The Court shall, within thirty (30) days from the date of receipt thereof, decide on whether to approve or reject the restructuring plan:

Provided that, insofar as possible, the Court shall, before so doing, hear from the officials of the debtor and of any affected parties, as it may deem appropriate, by serving them with a notice of the proceedings.

(2) The Court shall only approve and confirm a restructuring plan if it is satisfied that:

(a) the restructuring plan has reasonable prospects of ensuring that the debtor’s economic viability is preserved or restored;

(b) the restructuring plan has been approved for adoption by the affected parties in accordance with the terms of this Act;

(c) the formation of voting classes, and the attribution of voting rights thereto, has been performed in accordance with the terms of this Act;

(d) the restructuring plan ensures that affected parties with a sufficient commonality of interest in the same class are treated equally, and in a manner proportionate to their claim;

(e) any new financing proposed in the restructuring plan is necessary to implement the restructuring plan and does not unfairly prejudice the interests of the affected parties; and

(f) notification of the restructuring plan has been given to all affected parties in terms of article 39.

(3) Following receipt of an application for the confirmation of a restructuring plan, the Court may request any explanations or clarifications as it may consider appropriate for the formulation of its decision, which shall be provided to it, either verbally or in writing, as the Court may direct.

(4) If a dissenting creditor has opposed the approval of the restructuring plan, on the grounds of, either:

(a) the failure of the restructuring plan to satisfy the best-interest-of-creditors test; or

(b) a breach of the conditions for a cross-class cram-down in terms of article 42(1), the Court shall appoint an expert, who shall be an insolvency practitioner, to, within thirty (30) days from the date of his appointment, carry out, or cause the carrying out, of such valuations and other procedures as may be necessary or required so as to enable the expert to submit to the Court his report in writing regarding the subsistence, or otherwise, of the relevant grounds for opposition, and motivating the basis on which his conclusions are founded:

Provided that the insolvency practitioner who is so appointed may, with the approval of the Court, appoint any such experts as may be deemed necessary to assist in carrying out valuations and other procedures, and any costs incurred for this process, shall, if the opposition is unfounded, be borne by the dissenting creditor, or, if the grounds for opposition are found to subsist, by the debtor.

(5) Without prejudice to sub-article (1), where a restructuring plan is opposed on the grounds referred to in sub-article (4)(a) or (4)(b), the Court shall, within thirty (30) days from the date of receipt of a final report from the expert appointed in terms of sub-article (4), make a determination regarding the subsistence or otherwise of the said grounds, and the Court shall reject the restructuring plan if either of the said grounds are determined to subsist.

(6) Upon the Court’s approval of the restructuring plan, it shall become effective and binding on all affected parties for all purposes of law.