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Part IV · Debt Restructuring Arrangements

53. Submission of approved Debt Restructuring Arrangements to 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 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 vote of the creditor's at the Debt Restructuring Arrangement negotiation meeting; and

(b)

the final terms of the Debt Restructuring

Arrangement.

(2)

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

Restructuring Arrangement satisfy the provisions of this

Part.

(3)

On confirming that the terms of the Debt Restructuring

Arrangement satisfy the provisions of this Part, the Official

Receiver shall issue a certificate recommending a Debt

Restructuring Arrangement.

(4)

The Official Receiver shall then-

(a)

present this certificate, together with written notice of the result of the creditor vote at the

Rescue, Rehabilitation and Insolvency negotiation meeting and the final terms of the Debt Restructuring Arrangement, to the appropriate court; and

(b)

notify the 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 Debt Restructuring Arrangement if -

(a)

the Arrangement does not satisfy the provisions of this Part; or

(b)

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

(c)

the Official Receiver becomes aware of a material change in the debtor’s circumstances that was not reasonably foreseeable in the debtor’s statement of financial affairs or accompanying documents;

(d)

the Official Receiver is of the opinion that the terms of the Debt Restructuring Arrangement are not reasonable or are not fair to the debtor and the creditors as a whole.

(6)

If the Official Receiver refuses to issue a certificate recommending a Debt Restructuring Arrangement, the

Official Receiver shall —

(a)

provide reasons for such refusal to the debtor, personal insolvency proposer and creditors; and

(b)

notify the appropriate court of its recommendation, that the court may not confirm the coming into effect of the Debt Restructuring

Arrangement.

Rescue, Rehabilitation and Insolvency

Part V

Debt Rehabilitation Orders

Part VI

Part VII

Personal Insolvency Register

Part VIII

Part IX

Part X

Compromises

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Part XII

Part XIII

Part XIV

Cross - Border Insolvency

Part XV

Part XVI

Part XVII

Schedules