Cap. 631 Art. 31Acquisition of interim financing.

(1) The officials of the debtor shall, in consultation with the insolvency practitioner, review whether the procurement of interim financing shall be necessary in order to preserve the economic viability of the debtor until the confirmation of a restructuring plan.

(2) If interim financing is deemed to be necessary, the officials of the debtor may solicit proposals from third parties willing to provide the debtor with interim financing, and shall forward any proposals they are desirous of accepting to the insolvency practitioner, including any terms pursuant to which the interim financing is proposed.

(3) Where the insolvency practitioner is satisfied that the procurement of interim financing is necessary in order to preserve the economic viability of the debtor until the confirmation of a restructuring plan and that the acceptance of the proposed terms would not infringe any provisions of this Act, the insolvency practitioner shall:

(a) if the proposed interim financing is unsecured, approve the acquisition of the interim financing; or

(b) if the proposed interim financing is secured, convene a meeting of the affected parties, or classes thereof, that would be adversely impacted by the acquisition of the proposed secured interim financing, for the purpose of laying before them, and holding a vote on, the proposed terms for the acquisition of secured interim financing.

(4) Where a meeting is convened in terms of sub-article (3)(b), no less than seven (7) days’ notice shall be given for the holding of the meeting, and the insolvency practitioner shall also send a copy of the notice convening the meeting to any officials of the debtor.

(5) The acquisition of secured interim financing shall be approved subject to the agreement of not less than fifty per cent (50%) of the affected parties in each class, by reference to the value of the claims represented thereby.

(6) Any interim financing approved in terms of this article shall be acquired by the debtor and the claim for repayment thereof may be immediately included within the restructuring plan, provided that the repayment of interim financing shall, in all cases, not be subject to any reduction within the scope of a restructuring plan.

(7) The insolvency practitioner shall notify any revisions that arise consequent to this article, to the ranking of claims or the formation of classes to the officials of the debtor and to the affected parties, in writing and without undue delay.