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

285. Submission of an approved MSME Company Debt Restructuring Arrangement to the Offi cial Receiver

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

(1)

After the proposal for a MSME Company

Debt Restructuring Arrangement has been accepted by the creditors, the personal insolvency proposer shall, as soon as practicable, submit to the Official Receiver –

(a)

written notice of the result of the creditor vote at the MSME Company Debt Restructuring

Arrangement negotiation meeting; and

(b)

the final terms of the MSME Company Debt

Restructuring Arrangement.

(2)

On receiving the documents set out in subsection (1), the Official Receiver shall confirm that the terms of the

MSME Company Debt Restructuring Arrangement satisfy the provisions of this Part.

Rescue, Rehabilitation and Insolvency

(3)

On confirming that the terms of the MSME Company

Debt Restructuring Arrangement satisfy the provisions of this Part, the Official Receiver shall issue a certificate recommending a MSME Company Debt Restructuring

Arrangement.

(4)

On issuing a certificate recommending a MSME

Company Debt Restructuring Arrangement, the Official

Receiver shall -

(a)

present this certificate, together with notice of the result of the creditor vote at the negotiation meeting and the final terms of the MSME

Company Debt Restructuring Arrangement, to the appropriate court; and

(b)

notify the

MSME debtor, the personal insolvency proposer and all creditors listed in the

Arrangement, of the issuance of the certificate.

(5)

The Official Receiver may only refuse to issue a certificate recommending a MSME Company Debt

Restructuring Arrangement if –

(a)

the Arrangement does not satisfy the provisions of this Part;

(b)

the Official Receiver becomes aware of a material inaccuracy in the MSME debtor’s statement of financial affairs or accompanying documents;

(c)

the Official Receiver becomes aware of a material change in the MSME debtor’s circumstances that was not reasonably foreseeable in the

MSME debtor’s statement of financial affairs or accompanying documents; or

(d)

the Official Receiver is of the opinion that the terms of the MSME Company Debt Restructuring

Rescue, Rehabilitation and Insolvency

Arrangement are not reasonable or are not fair to the MSME debtor and the creditors.

(6)

If the Official Receiver refuses to issue a certificate recommending an MSME Company Debt Restructuring

Arrangement, the Official Receiver shall-

(a)

provide reasons for this refusal to the MSME debtor, personal insolvency proposer and creditors of this refusal; and

(b)

notify the appropriate court of its recommendation that the court does not confirm the coming into effect of the MSME Company Debt Restructuring

Arrangement.