Creditors voting rights

During business rescue proceedings the Act provides for three formal meetings to be arranged and led by the appointed business rescue practitioner. The main purpose of the first meeting of creditors is for the business rescue practitioner to evaluate and receive proof of claims by the creditors of the company. A meeting of employees also needs to be arranged in order to inform such employees of the rights in these proceedings.

After the business rescue practitioner presents the proposed business rescue plan to all affected parties, a second meeting of creditors takes place entertaining discussions on the proposed business rescue plan, possible amendments and the eventual voting on the proposed business rescue plan. If the proposed business rescue plan also contemplates a restructuring that affects the holders of the company’s securities (shareholders), such holders shall also be entitled to vote on the proposed adoption of the business rescue plan.