Requirements for acceptance into simplified debt restructuring programme
72F.—(1)  The Official Receiver may, on the application of a company (called in this Division the applicant company) under section 72E, accept the applicant company into the simplified debt restructuring programme if, and only if, both the following requirements are met:
(a)the applicant company meets the eligibility criteria set out in subsection (2);
(b)there is no circumstance in subsection (3), known to the Official Receiver, that makes the applicant company unsuitable for acceptance into the simplified debt restructuring programme.
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(2)  For the purposes of subsection (1)(a), the eligibility criteria are as follows:
(a)the applicant company’s annual sales turnover for the relevant period does not exceed $10 million (or any amount that may be prescribed in substitution by the Minister by order in the Gazette);
(b)the applicant company has not more than 30 employees (or any number that may be prescribed in substitution by the Minister by order in the Gazette);
(c)the applicant company has not more than 50 creditors (or any number that may be prescribed in substitution by the Minister by order in the Gazette);
(d)the liabilities of the applicant company (including contingent and prospective liabilities) do not exceed $2 million (or any amount that may be prescribed in substitution by the Minister by order in the Gazette);
(e)any other criteria as may be prescribed by the Minister by order in the Gazette.
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(3)  For the purposes of subsection (1)(b), each of the following is a circumstance that makes an applicant company unsuitable for acceptance into the simplified debt restructuring programme:
(a)the applicant company is being wound up pursuant to —
(i)an order for the winding up of a company under section 216(2)(f) of the Companies Act 1967;
(ii)an order for winding up made under section 124 (or any previous written law corresponding to that provision); or
(iii)a resolution passed for the winding up of a company under section 160 (or any previous written law corresponding to that provision);
(b)the applicant company is in judicial management —
(i)within the meaning of section 88(2); or
(ii)pursuant to an application made under the repealed section 227B(1) of the Companies Act 1967 as in force before 30 July 2020;
(c)an application has been made by or in respect of the applicant company under any of the following provisions and the application is pending:
(i)section 210(1), (4) or (10) of the Companies Act 1967;
(ii)section 64(1) (or any previous written law corresponding to that provision);
(iii)section 71 (or any previous written law corresponding to that provision);
(iv)section 91 (or any previous written law corresponding to that provision);
(v)section 124 (or any previous written law corresponding to that provision);
(d)an order under section 210(10) of the Companies Act 1967, one or more orders under section 64(1) (or any previous written law corresponding to that provision) or an automatic moratorium mentioned in section 64(8) (or any previous written law corresponding to that provision), is in force in relation to the applicant company;
(e)a provisional liquidator of the applicant company has been appointed under section 161 (or any previous written law corresponding to that provision);
(f)an interim judicial manager has been appointed by the Court under section 92 (or any previous written law corresponding to that provision) or by the applicant company under section 94(3), and the term of the appointment of the interim judicial manager has not ended;
(g)the applicant company has made an application for acceptance into the simplified winding up programme under section 250D which is pending;
(h)the affairs of the applicant company are such that —
(i)the administration of the simplified debt restructuring programme in relation to the applicant company is likely to require significant resources or specialised knowledge or expertise; or
(ii)the applicant company (with the assistance of a Restructuring Advisor) is unlikely to be able to formulate a proposed compromise or arrangement with its creditors, obtain the agreement of two-thirds majority in value of its creditors to the proposed compromise or arrangement, and make an application to the Court under section 72M(1) for the approval of the proposed compromise or arrangement within 90 days after the applicant company’s acceptance into the programme;
(i)there is a trustee appointed for debenture holders in respect of the applicant company;
(j)at least one-third in value of the creditors of the applicant company object to the applicant company’s acceptance into the simplified debt restructuring programme;
(k)a person who has appointed, or is or may be entitled to appoint, a receiver and manager of the whole (or substantially the whole) of the applicant company’s property under the terms of any debentures of the applicant company secured by a floating charge, or by a floating charge and one or more fixed charges, that would be valid and enforceable in the case of a liquidation of the applicant company, objects to the applicant company’s acceptance into the simplified debt restructuring programme;
(l)any other circumstances as may be prescribed by order in the Gazette.
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(4)  Any order made under subsection (2)(a), (b), (c), (d) or (e) or (3)(l) must be presented to Parliament as soon as possible after publication in the Gazette.
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(5)  In this section —
“annual sales turnover”, for a relevant period in relation to an applicant company, means —
(a)if the relevant period is a business year that consists of 12 months, the sales turnover of the applicant in that business year; or
(b)if the relevant period is a business year that does not consist of 12 months or is a business commencement period, the amount calculated using the formula where —
(i)S is the sales turnover of the applicant company in that business year or business commencement period; and
(ii)B is the number of months in that business year or business commencement period;
“business commencement period”, in relation to an applicant company, means the period between the date of commencement of the business operations of the applicant company and the date of the application by the applicant company under section 72E (both dates inclusive);
“business year” means a period in respect of which an applicant company prepares or is required to prepare accounts;
“employee”, in relation to an applicant company, means an individual who has entered into or works under a contract of service with the applicant company;
“relevant period”, in relation to an applicant company, means —
(a)the business year of the applicant company immediately preceding the date of the application by the applicant company under section 72E; or
(b)if there is no such business year, the business commencement period of the applicant company;
“sales turnover”, in relation to an applicant company, means the aggregate of the following amounts, after deducting sales rebates, goods and services tax and other taxes directly related to those amounts:
(a)the amounts derived by the applicant company from the sale of products and the provision of services falling within the ordinary activities of the applicant company;
(b)any other amounts derived from the business operations of the applicant company, but excluding gains from the sale of fixed assets, donations, grants, subsidies, subscriptions, interest, dividends, goods purchased for resale and investment income.
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