Insolvency — Checklist for first application to court to convene meeting

Introductory note:
When a creditors’ scheme of arrangement is proposed pursuant to s 411 of the Corporations Act 2001 (Cth) (CA), an ex parte order is required from the court for the convening of a meeting, or meetings, to obtain creditor approval for the proposed scheme.
The court has a discretion as to whether it will order a meeting be convened. The court considers whether the proposal is fit for consideration by the proposed meeting and whether the proposal contains a commercial proposition likely to gain the court’s approval if creditors approve the scheme at the proposed meeting.
How to use this checklist:
This checklist sets out the steps which a practitioner must take to properly prepare an ex parte application for court orders for the convening of a meeting creditors to approve a scheme of arrangement.

Other notes:
If a scheme is proposed between a holding company and its creditors, and between wholly owned subsidiaries of that holding company and their creditors, involving a transfer of subsidiary assets and liabilities to the holding company, the court may order a consolidated meeting of creditors.

Links to related content:
First court application — to convene meeting