Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_18:p20
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 18 (pt 20/23)
Character Range: 68254–70851

has both a relevant equity interest, and a relevant debt interest under subsection 165‑115Y(1), in the loss company immediately before the alteration time and:
 (i) all the shares in the loss company are of the same class and have the same market value; and
 (ii) the equity consists only of a share or shares in the loss company; and
 (iii) the debt consists of a single debt or 2 or more debts of the same kind;
and the reductions that would result from the application of subsection (3) would be reasonable in the circumstances.

Formula method

 (3) The adjustment amount to be worked out under this subsection is the amount worked out using the formula:
and the amount so worked out is to be applied in making reductions as follows:
 (a) the adjustment amount is to be applied in relation to the *share or shares constituting the equity; and
 (b) if there is an amount remaining after making reductions in relation to those shares—the amount remaining is to be applied in relation to any debt or, if there is a debt consisting of 2 or more separate debts, in relation to those debts.

Applying adjustment amount under formula method to shares

 (4) If the adjustment amount referred to in subsection (3) is to be applied in relation to an equity consisting of 2 or more *shares:
 (a) it is to be applied equally among the shares; and
 (b) if there is any amount remaining after the application of part of the adjustment amount to a share, the amount remaining is to be applied to any other share, or equally among any other shares, to the maximum extent possible.

Applying adjustment amount under formula method to debt

 (5) If the adjustment amount referred to in subsection (3) or part of it is to be applied in relation to a debt (the overall debt) and the overall debt consists of 2 or more debts (the constituent debts), the amount to be applied in relation to each constituent debt is the amount worked out using the formula:

Non‑formula method

 (6) The adjustment amount to be worked out under this subsection is the amount that is appropriate having regard to:
 (a) the object of this Subdivision and other matters set out in section 165‑115J; and
 (b) the extent of the affected entity's relevant equity interests or relevant debt interests, as the case may be, in the *loss company immediately before the alteration time; and
 (c) when, and under what circumstances, the relevant equity interests or relevant debt interests were *acquired by the affected entity; and
 (d) the loss company's overall loss at the alteration time; and
 (e) the extent to which that overall loss