PART 5
VOLUNTARY ARRANGEMENTS
Definitions of this Part
51.  In this Part —
“creditors’ meeting” means a meeting of creditors summoned under section 281 of the Act;
“nominee’s report” means a report required to be submitted under section 280(1) of the Act by a nominee;
“proposal” means a proposal by a debtor for a voluntary arrangement for the purposes of Part 14 of the Act;
“Voluntary Arrangements Regulations” means the Insolvency, Restructuring and Dissolution (Voluntary Arrangements) Regulations 2020 (G.N. No. S 588/2020).
Application for interim order
52.—(1)  An application to the Court by an insolvent debtor for an interim order under Part 14 of the Act must be entitled “In the Matter of Part 14 of the Insolvency, Restructuring and Dissolution Act 2018”.
(2)  The affidavit supporting the application must state —
(a)the reasons for the making of the application;
(b)the particulars of any execution or other legal process which, to the debtor’s knowledge, has been commenced against the debtor;
(c)that the debtor is able to apply for the debtor’s own bankruptcy;
(d)that no previous application for an interim order has been made by or in respect of the debtor in the period of 12 months ending on the date of the affidavit; and
(e)the name of the person to be appointed as the nominee under the proposal and that the person (called in this Part the intended nominee) is a licensed insolvency practitioner and is willing to act as a nominee in relation to the proposal.
(3)  A copy of the notice to the intended nominee under regulation 6 of the Voluntary Arrangements Regulations, duly endorsed by the intended nominee under paragraph (3) of that regulation, must be exhibited to the affidavit.
(4)  Where the debtor is a firm, the affidavit supporting the application for an interim order may be made by one of the partners in the firm who joined in the preparation of the proposal.
Persons who may appear at hearing of application for interim order
53.—(1)  A debtor applying for an interim order must give at least 2 clear days’ notice of the hearing to —
(a)any creditor who has filed a bankruptcy application against the debtor; and
(b)the intended nominee who has agreed to act in relation to the debtor’s proposal.
(2)  Any person who has been given notice under paragraph (1) may appear or be represented at the hearing of the application, and the Court is to take into account any representations made by or on behalf of any such person in deciding whether to make an interim order on the application.
Court to fix date for consideration of nominee’s report
54.—(1)  If the Court makes an interim order, the Court is to fix a date for the consideration of the nominee’s report.
(2)  Subject to paragraph (3), the date for the consideration of the nominee’s report must be not later than the date on which the interim order ceases to have effect under section 276(4) of the Act.
(3)  If an extension of time is granted under section 280(4) of the Act for filing the nominee’s report, the Court is to correspondingly extend the period for which the interim order has effect, unless there appear to be good reasons against it.
Action to follow making of interim order
55.  Where an interim order is made in respect of a debtor, the debtor must —
(a)serve a sealed copy of the order on the nominee in question; and
(b)give notice of the making of the order to any person who was given notice of the hearing under rule 53(1) but who was not present or represented at the hearing.
Nominee’s report on proposal
56.—(1)  The nominee must submit the nominee’s report to the Court at least 2 days before the interim order ceases to have effect and must exhibit —
(a)a copy of the debtor’s proposal, with amendments (if any) made under regulation 7 of the Voluntary Arrangements Regulations; and
(b)a copy or summary of any statement of affairs provided by the debtor.
(2)  In the nominee’s report, the nominee must inform the Court of the nominee’s opinion as to whether a meeting of the debtor’s creditors should be summoned under section 281 of the Act and the reasons for the nominee’s opinion.
(3)  The nominee must send a copy of the following documents to any person who has made a bankruptcy application against the debtor at least 2 days before the hearing by the Court to consider the nominee’s report:
(a)the debtor’s proposal;
(b)the nominee’s report and the nominee’s comments accompanying it, if any;
(c)a summary of the debtor’s statement of affairs.
Replacement of nominee
57.  Where a debtor intends to apply to the Court under section 280(3) of the Act for the nominee to be replaced, the debtor must serve the application on the nominee at least 2 days before the hearing.
Consideration of nominee’s report
58.—(1)  At the hearing by the Court to consider the nominee’s report, any of the persons who have been given notice under rule 53(1) may appear or be represented.
(2)  The debtor must —
(a)serve on the nominee a sealed copy of any order made by the Court at the hearing; and
(b)give notice of the making of the order to any person who was given notice of the hearing under rule 53(1) but who was not present or represented at the hearing.
Appeal against chairperson’s decision on entitlement to vote at creditors’ meeting
59.—(1)  This rule applies where an appeal is made to the Court against a decision of the chairperson of a creditors’ meeting under regulation 13(4) or 14(2) of the Voluntary Arrangements Regulations.
(2)  If on an appeal the chairperson’s decision is reversed or varied by the Court, or a creditor’s vote is declared invalid, the Court may —
(a)order another creditors’ meeting to be summoned; and
(b)make such other order as the Court thinks just.
(3)  The Court is not to make any order mentioned in paragraph (2)(a) or (b) unless the Court considers that the matter is such as to give rise to unfair prejudice or a material irregularity.
(4)  An appeal to the Court against a decision under regulation 13(4) or 14(2) of the Voluntary Arrangements Regulations must not be made after the end of the period of 28 days beginning on the day on which the nominee’s report is made to the Court under section 283 of the Act.
(5)  The chairperson is not personally liable for any costs incurred by any person in respect of an appeal against the chairperson’s decision under regulation 13(4) or 14(2) of the Voluntary Arrangements Regulations.
Application for review of decision of creditors’ meeting
60.—(1)  A person who makes an application for the Court to review a decision of the creditors’ meeting under section 285 of the Act must —
(a)serve a copy of the application on the debtor and nominee in question at least 3 days before the date of the hearing of the application; and
(b)serve sealed copies of any order made by the Court on the application on the debtor and nominee in question.
(2)  If the order includes a direction by the Court under section 285(2)(b) of the Act for any further creditors’ meeting to be summoned, a copy of the order must also be given by the applicant to whoever is, in accordance with the direction of the Court, required to summon the meeting.
(3)  The debtor in question must —
(a)upon receiving a copy of the Court’s order, give notice of it to —
(i)any person who was sent a notice summoning the creditors’ meeting under regulation 11(1) of the Voluntary Arrangements Regulations;
(ii)any person who attended the creditors’ meeting which approved the debtor’s proposal; and
(iii)such other persons as the Court directs; and
(b)within 7 days after the service of the order (or within such longer period as the Court may allow), give notice to the Court whether the debtor intends to make a revised proposal to the creditors, or to invite re-consideration of the original proposal.