Section 27: Claim and objection to approved restructuring program

(1) A creditor who does not agree with the proposal of the restructuring program approved pursuant to sub-section (7) of Section 24 may make an application of claim and objection within seven days, setting out the following grounds and reasons:

(a) The restructuring program approved by a majority in the meeting of creditors is not in the interest of the creditors other than the secured creditors

(b) A serious irregularity has been committed in calling or conducting the meeting of creditors, and the program approved by that meeting is not in the interest of the creditors other than the secured creditors,

(c) Any false or misleading information has been given, or material information has been concealed in relation to the company or its restructuring program.

2) Where an application is referred to in sub-section (1), the Court shall order the company and the restructuring manager to submit written statements in relation thereto within a period of seven days.

3) On receipt of written statements referred to in sub-section (2) or on the expiry ratio of the period for the submission of such written statements, the Court shall hear the application referred to in sub-section (1) and may, if the application is found to be based on grounds, invalidate to make ineffective the resolution on the restructuring program adopted in the meeting of creditors.

4) If the Court invalidates to make ineffective the resolution adopted in the meeting of creditors and approved pursuant to sub-section (3), the Court shall issue an order to liquidate the company immediately.

5) Information of the order issued pursuant to sub-section (3) or (4) shall be given to the concerned company and the restructuring manager.