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As enacted
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Part XI · Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

277. MSME Company Debt Restructuring Arrangements: General Conditions

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

For the purposes of this Part, “MSME debtor”

means a company that has total outstanding secured and unsecured debts that amount to no more than fifty million rupees at the time of the submission of a proposal to the

Official Receiver under section 282.

(2)

Subject to the provisions of this Act, a MSME debtor who satisfies the eligibility criteria specified in section 278

may make a proposal to creditors for an MSME Company

Debt Restructuring Arrangement in respect of the payment, satisfaction or restructuring of the MSME debtor’s debts.

(3)

A proposal for an MSME Company Debt Restructuring

Arrangement may be made and submitted by a MSME debtor, or on behalf of a MSME debtor by a personal insolvency proposer, in accordance with the provisions of this Part and any procedure as may be prescribed.

Rescue, Rehabilitation and Insolvency

(4)

A personal insolvency proposer may also act, after the coming into effect of an MSME Company Debt Restructuring

Arrangement, as a personal insolvency administrator.

(5)

Any rules may be made by the Authority regulating the performance of the functions of personal insolvency proposers and personal insolvency administrators under this

Part.

(6)

Two or more proposals for a MSME Company Debt

Restructuring Arrangement, in respect of two or more MSME

Companies, may be dealt with as one proposal where-

(a)

the personal insolvency proposer considers that they could reasonably be dealt with together because of the financial relationship of the

MSME debtors involved; and

(b)

the terms of each of the proposals specify details of how the Arrangements should be administered together, including-

(i)

the treatment of joint and individual assets and the treatment of joint and individual debts;

(ii)

whether the approval of each of the

Arrangements is to be contingent on the approval of another Arrangement;

(iii)

the effect of the failure or early termination of one Arrangement on any other Arrangement; and

(iv)

how any joint payments, made by two or more MSME debtors, should be apportioned between the creditors.

Rescue, Rehabilitation and Insolvency

(7)

A MSME Company Debt Restructuring Arrangement may authorise or require the personal insolvency administrator to -

(a)

carry on the MSME debtor’s business, or trade on the MSME debtor’s behalf or in the debtor’s name;

(b)

realise the assets of the MSME debtor; or

(c)

collect, administer or dispose of any funds of the

MSME debtor.

Read on from s 278

Part XII

Read on from Part XII

Part XIII

Read on from Part XIII

Part XIV

Cross - Border Insolvency

Read on from Part XIV

Part XV

Read on from Part XV

Part XVI

Read on from Part XVI

Part XVII

Read on from Part XVII

Schedules