Cap. 631 Art. 42Cross-class cram- down.

(1) If the restructuring plan is not adopted by the affected parties in terms of the thresholds prescribed in article 41, the restructuring plan shall notwithstanding be deemed to be adopted if, in the view of the insolvency practitioner, the restructuring plan satisfies at least the following conditions:

(a) the restructuring plan satisfies the best-interest-of-creditors test;

(b) the restructuring plan will not result in any class of affected parties receiving economic value in excess of the full amount of its claims;

(c) the restructuring plan ensures that any dissenting class of affected parties is treated at least as favourably as any other class of affected parties whose claims would, if the normal ranking of liquidation priorities were to be applied, rank pari passu with the claims of the dissenting class, and more favourably than any other class of affected parties whose claims would, if the normal ranking of liquidation priorities were to be applied, rank below the claims of the dissenting class; and

(d) the restructuring plan has been approved for adoption by at least one (1) class of affected parties who would, if the normal ranking of liquidation priorities were to be applied, receive payment of their claims in whole or in part.

(2) Where a restructuring plan is adopted in terms of this article, the insolvency practitioner shall, subject to the agreement of the debtor and without undue delay, make an application to the Court for the confirmation of the restructuring plan so that it may be made effective and binding on all affected parties for all purposes of law, to which the insolvency practitioner shall annex a copy of the adopted restructuring plan and appropriate supporting documentation and statements as may be necessary so as to evidence that the restructuring plan has satisfied the criteria for adoption in terms of sub-article (1), as well as an identification of the dissenting creditors and the grounds, where these are expressly stated, pursuant to which any such dissenting creditors have voted against the adoption of the restructuring plan.