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Under the new process, the role of a restructure practitioner has been simplified when compared to that of an administrator under insolvency framework. The roles and responsibilities of restructure practitioner consist of the following:

• Help determine if a company is eligible.
• Support the company to review its financial affairs.
• Assist in the development of a business restructuring plan.
• Certify the small business restructure to creditors.
• Once the plan is implemented, manage disbursements.

Restructure practitioners will not be required to manage the day-to-day affairs of a company and will be free of any personal liability. To provide a more cost-effective service, practitioners will be eligible to register as a small business restructuring practitioner only. Registered liquidators will also be able to manage the process.

The company must put a restructuring plan to its creditors within 20 business days of entering the process. The company’s small business restructuring practitioner can extend this period by up to 10 business days where an extension is reasonable in the circumstances.

Once a plan Is put to creditors, they have 15 business days to vote to accept or reject the plan.

Once a plan is made, payments must be disbursed to a company’s creditors in accordance with the terms set out in the plan.

All admissible debts and claims rank equally upon repayment of the plan. That means that all creditors are paid the same ‘cents in the dollar’ and all are paid at the same time.

When a company pays off its obligations under the restructuring plan, it is released from all debts or claims that were admissible under the plan.

A company ‘exits’ a plan if, for example it fails to make payments under the plan. If this happens before its obligations are paid off, it remains liable for the original debt owed prior to the plan commencing, minus any repayments that occurred under the plan.