Document ID: chunk:federal_register_of_legislation:C2025C00185:section:458e:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 458E (pt 1/2)
Character Range: 1703610–1706421

458E  Meaning of eligible for temporary restructuring relief

When is a company eligible for temporary restructuring relief?
 (1) A company is eligible for temporary restructuring relief if:
 (a) before the end of the restructuring relief period, the directors of the company:
 (i) make a declaration in writing that sets out the matters mentioned in paragraphs (b), (c) and (d) and, if there is a prescribed form for the declaration, is in the prescribed form; and
 (ii) publish notice of the declaration in the prescribed manner; and
 (b) there are reasonable grounds to believe that:
 (i) the company is insolvent, or is likely to become insolvent before the declaration under subparagraph (a)(i) expires; and
 (ii) the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on the day on which notice of the declaration under subparagraph (a)(i) is published, or on any day afterwards on which the declaration has not expired; and
 (c) the board has resolved to the effect that a restructuring practitioner for the company should be appointed; and
 (d) there is no:
 (i) restructuring practitioner for the company; or
 (ii) restructuring practitioner for a restructuring plan made by the company that has not yet terminated; or
 (iii) administrator of the company; or
 (iv) administrator of a deed of company arrangement executed by the company that has not yet terminated; or
 (v) liquidator or provisional liquidator of the company; and
 (e) the declaration under subparagraph (a)(i) has not expired; and
 (f) the company has not otherwise ceased to be eligible for temporary restructuring relief for any reason; and
 (g) the company has not previously been eligible for temporary restructuring relief that has ceased:
 (i) because a previous declaration under subparagraph (a)(i) has expired; or
 (ii) for any other reason.
 (2) A declaration under subparagraph (1)(a)(i) in relation to a company expires:
 (a) 3 months after notice of the declaration is first published in the prescribed manner (the initial relief period); or
 (b) a further one month after the initial relief period if:
 (i) paragraphs (1)(b), (c) and (d) continue to be satisfied in relation to the company; and
 (ii) the directors of the company have taken all reasonable steps to appoint a restructuring practitioner but have been unable to do so; and
 (iii) the directors of the company make a further declaration under subsection (3), and publish notice of that declaration in the prescribed manner; and
 (iv) notice of the further declaration is published no later than 2 weeks before the end of the initial relief period.
 (3) A declaration by the directors of a company under this subsection must:
 (a) state that paragraphs (1)(b), (c) and (d) continue to