Corporations Act 2001

The Court may order that a company is not eligible for temporary restructuring relief if there are not reasonable grounds to believe any of the following:

the company is insolvent, or is likely to become insolvent before the declaration under paragraph 458E(1)(a) expires;

the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on any day after notice of the declaration made under subparagraph 458E(1)(a)(i) is published on which the declaration has not expired;

the company has taken all reasonable steps to appoint a restructuring practitioner;

the company will take all reasonable steps to appoint a restructuring practitioner before the expiry of the declaration made by the company under subsection 458E(1).

The Court may make an order under subsection (1):

on the application of:

a creditor of the company; or

ASIC; or

on the Court’s own initiative.

If the Court makes an order in relation to a company under subsection (1), the directors of the company must within 5 business days after the order is made:

publish notice of the order in the prescribed manner; and

give ASIC a copy of the order.

Failure to comply with this subsection is an offence (see subsection 1311(1)).

Nothing in this section limits the power of the Court to make an order that a company is not eligible for temporary restructuring relief for any other reason.