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Part IV · Debt Restructuring Arrangements

54. Court Confi rmation of Debt Restructuring Arrangements

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

(1)

Where the court receives a recommendation from the Official Receiver with respect to a Debt Restructuring

Arrangement under section 53, the court shall consider the recommendation, together with any accompanying documentation.

(2)

When considering a recommendation under this section, the court shall be entitled to treat a certificate issued by the Official Receiver under subsection (3) of section 53, as evidence of the matters certified therein.

(3)

The court shall, when considering a recommendation under this section, hear any objection to the recommendation that is made by a creditor, the debtor or the personal insolvency proposer.

(4)

Where an objection has been made under subsection (3), and the court requires further information or evidence to arrive at a decision, the court may hold a hearing. The hearing shall be notified by written notice to the Official

Receiver, the personal insolvency proposer, the debtor and the creditors.

(5)

Having considered the recommendation, the court shall make an order confirming the coming into effect of the

Debt Restructuring Arrangement if it considers that —

(a)

the Debt Restructuring Arrangement satisfies the criteria in this Part; and

(b)

the making of the

Debt

Restructuring

Arrangement has complied with the procedural requirements of this Part.

(6)

On confirming the coming into effect of the Debt

Restructuring Arrangement, the court shall direct the Official

Receiver to cause such details of the Arrangement as may be prescribed, including the name, address and description of the debtor, and the date on which the order is made to be published —

Rescue, Rehabilitation and Insolvency

(a)

in the Personal Insolvency Register; and

(b)

by public notice.

(7)

When making an order confirming the Debt

Restructuring Arrangement, the court shall direct the Official

Receiver to give written notice —

(a)

to the debtor, personal insolvency proposer and personal insolvency administrator of the issue of the order and the coming into effect of the Debt

Restructuring Arrangement;

(b)

to the debtor of the obligations of debtor's under section 32 to the extent that these obligations apply, for the duration of the Debt Restructuring

Arrangement;

(c)

to each creditor of the debtor of the issue of the order and the coming into effect of the Debt

Restructuring Arrangement; and

(d)

to each creditor of the rights of creditors to object to the Debt Restructuring Arrangement under section 57.

Read on from s 55

Part V

Debt Rehabilitation Orders

Read on from Part V

Part VI

Read on from Part VI

Part VII

Personal Insolvency Register

Read on from Part VII

Part VIII

Read on from Part VIII

Part IX

Read on from Part IX

Part X

Compromises

Read on from Part X

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Read on from Part XI

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