Cap. 631 Art. 25Stay of individual enforcement actions.   Cap. 12. Exclusions from stay of individual enforcement actions.      Cap. 234.      Cap. 503.   Cap. 12.   Cap. 12.  Cap. 484.

(1) Upon the filing of an application requesting that the

Court place the debtor under standard preventive restructuring procedure and unless it is dismissed, and, in the event that the Court accedes to the request and issues an order to place the debtor under standard preventive restructuring procedure, for a period of four (4) months following the date of the application:

(a) the execution of claims of a monetary nature against the debtor, with the exclusion only of workers’ claims, and any interest that may otherwise accrue thereon, shall be stayed;

(b) in respect of essential executory contracts entered into prior to the order to place the debtor under preventive restructuring procedure, no party may exercise, to the detriment of the debtor, any right of termination, or any right to accelerate, modify, withhold or suspend the performance of its obligations in favour of the debtor, or any right to repossess any property leased, sold or granted to the debtor, solely by virtue of the fact that they were not paid by the debtor, or by virtue of the debtor’s entry into preventive restructuring procedure;

(c) no precautionary or executive act or warrant mentioned in the Code of Organization and Civil Procedure shall be made or continued against the debtor or any property of the debtor, including any warrant in terms of article 312 of the Code of Organization and Civil Procedure;

(d) no arbitration proceeding shall be made or continued against the debtor or any property of the debtor; and

(e) notwithstanding anything contained in this sub-article, no judicial proceedings shall be commenced or continued against the debtor or its property, and any relevant court shall refuse any new judicial action against the debtor or shall ex officio order that ongoing judicial proceedings against the debtor are stayed.

(2) The Court shall suspend, stay or disallow any act or proceeding in terms of paragraph (d) or (e) of sub-article (1), or the execution of claims in terms of paragraph (a) of sub-article (1), as the case may be, ex officio upon becoming aware that a preventive restructuring application has been made and has not been dismissed, or a preventive restructuring order is in force.

(3) The Court may, pursuant to an application received in terms of sub-article (4), at any time issue an order to lift all or any of the protections granted to the debtor in terms of sub-article (1), in whole or in part, and subject to such terms as the Court deems fit to impose.

(4) An application in terms of sub-article (2) may be made to the Court by:

(a) the debtor, following, where applicable, a decision of the officials of the debtor;

(b) the insolvency practitioner; or

(c) any creditor or creditors, provided that it is proven to the satisfaction of the Court:

(i) that the protections granted no longer fulfil the objective of supporting negotiations on a restructuring plan;

(ii) that the protections granted shall cause substantial harm or financial distress to the creditor;

(iii) that the protections granted shall cause the creditor or class of creditors to be unfairly prejudiced in respect to any other creditor or class of creditors; or

(iv) that, where the creditor is asking the Court to lift the protection granted in terms of sub-article (1)(b), that a contract entered into between the debtor and the creditor is not an essential executory contract.

(5) The provisions of sub-article (1), without prejudice to the generality thereof, shall not apply insofar as these may be inconsistent with, or insofar as these may be construed as limiting or restricting:

(a) any action in rem against a ship or sea vessel;

(b) any action in rem against an aircraft or aircraft engine;

(c) any proceedings that may be instituted by the holder of a registered mortgage or a privileged creditor over a ship or sea vessel, or any other actions or proceedings to which a ship or sea vessel may be subject in terms of the Merchant

Shipping Act;

(d) any proceedings that may be instituted by the holder of a registered mortgage or a privileged creditor over an aircraft or aircraft engine, or any other actions or proceedings to which an aircraft or aircraft engine may be subject in terms of the Aircraft Registration Act;

(e) any warrant of arrest, whether in personam or in rem, of a sea-going vessel;

(f) any warrant of arrest, whether in personam or in rem, of an aircraft or aircraft engine;

(g) any warrant of seizure of a commercial going concern in terms of article 848A of the Code of Organization and Civil Procedure;

(h) any action to be brought in respect of a right stated in any of the foregoing warrants, in terms of article 843

of the Code of Organization and Civil Procedure; and

(i) any rights of a securitisation creditor as defined in the Securitisation Act.