Phillips Law

Section 138: Participation by Creditors

(4) In respect of any decision contemplated in this Part that requires the support of the holders of creditors’ voting interests –
(a) a secured or unsecured creditor has a voting interest equal to the value of the amount owed to that creditor by the company; and
(b) an unsecured creditor who would be subordinated in a liquidation in terms of a subordination agreement has a voting interest, as independently and expertly appraised and valued at the request of the practitioner, equal to the amount, if any, that the creditor could reasonably expect to receive in such a liquidation of the company.

(5) The corporate rescue practitioner of a company must –
(a) determine whether a creditor is independent for the purposes of this Part; and
(b) request a suitably qualified person to independently and expertly appraise and value an interest contemplated in subsection (4)(b); and
(c) give a written notice of the determination, or appraisal and valuation. to the person concerned at least 15 business days before the date of the meeting to be convened in terms of section 143.

(6) Within five business days after receiving a notice of a determination contemplated in subsection (5). A person may apply to a Court to –
(a) review the corporate rescue practitioner’s determination that the person is, or is not, an independent creditor; or
(b) review, re-appraise and re-value that person’s voting interest, as determined in terms of subsection (5)(b).

  • According to the Insolvency Act [Chapter 6:07]. PART XXIII: Corporate Rescue