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

282. MSME Company Debt Restructuring Arrangements: Preparation of MSME Debtor Proposal

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

(1)

A MSME debtor who meets the criteria in section 278, may prepare, with the assistance of a personal insolvency proposer, a proposal for a MSME Company Debt

Restructuring Arrangement.

(2)

The form of a proposal for a MSME Company Debt

Restructuring Arrangement may be prescribed.

(3)

The proposal for a MSME Company Debt

Restructuring Arrangement shall -

(a)

be signed by an authorised representative of the

MSME debtor;

(b)

have endorsed on it the name of-Rescue, Rehabilitation and Insolvency

(i)

the person, firm or body who is acting as a personal insolvency proposer; and

(ii)

the person, firm or body who is willing to act as a personal insolvency administrator on the coming into effect of the MSME Company Debt Restructuring

Arrangement.

(4)

The proposal for a MSME Company Debt

Restructuring Arrangement shall include a statement of the personal insolvency proposer confirming that it is of the opinion that -

(a)

the MSME debtor satisfies the eligibility requirements of section 278;

(b)

to the best of the personal insolvency proposer’s knowledge, the information contained in the

MSME debtor’s statement of financial affairs is complete and accurate;

(c)

the proposal has a reasonable prospect of being approved and implemented; and

(d)

the proposal offers a reasonable means of facilitating the economic rehabilitation of the

MSME debtor while allowing contributions to be made to the creditors from the MSME debtor’s available property and income.

(5)

The proposal for an MSME Company Debt

Restructuring Arrangement shall include, in addition to such requirements as may be prescribed, a statement of the

MSME debtor’s financial affairs.

(6)

The statement of the MSME debtor’s financial affairs, as required by subsection (5), shall be in accordance with section 33.

Rescue, Rehabilitation and Insolvency

(7)

The proposal for an MSME Company Debt

Restructuring Arrangement shall include a statement of the

MSME debtor’s consent to-

(a)

the Official Receiver making such enquiries as it considers necessary to determine whether the MSME debtor meets the eligibility criteria specified in section 278;

(b)

the postponement of the consideration of the MSME Company Debt Restructuring

Arrangement proposal by the Official Receiver until the Official Receiver has received satisfactory answers to such enquiries;

(c)

the disclosure by the Official Receiver of data of the MSME debtor to creditors and other third parties to the extent necessary for the making and consideration of an MSME Company Debt

Rehabilitation Arrangement; and

(d)

the disclosure to the Official Receiver, by creditors, government agencies, or any other relevant third parties, of data of the MSME debtor, to the extent necessary for the making and consideration of an MSME Company Debt

Rehabilitation Arrangement.

(8)

On the preparation by the MSME debtor, with the assistance of the personal insolvency proposer, of a proposal that satisfies the requirements of this section, the personal insolvency proposer shall submit the proposal to the Official

Receiver.

Read on from s 283

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