When a reorganisation plan fails to pass at the creditors' meeting, what has to be in place before the court may set a further hearing date?
General information · Not legal advice
Material to check
In a practice file of this kind, we read the minutes of the creditors' meeting showing that the plan was not adopted, the voting totals recorded in each class, the consents to adjournment from members of the classes, and the application by the administrator, the debtor or an entitled holder, if one was made.
These are types of material to look for, not evidence already verified by PRO SE.
Where readings differ
One reading takes the provision as a closed set of conditions: once the plan has failed to pass at the meeting, the court may set a further hearing date, on an application by the administrator, the debtor or an entitled holder, or on its own motion, but only where all three groups consent to the adjournment, at the voting-rights thresholds the provision sets for each class.
Another reading notes that the provision sets the consent thresholds class by class, so a class with no voting members and a class in which no vote was taken leave the record silent on what consent in that class means, and the provision does not say how the court treats that silence.
Your judgment
If one class recorded no votes at the meeting, what in the file could show whether that class has consented to a further hearing date?
PRO SE does not make this decision or keep a case record on this public site.When to reconsider
We look at this again if the provision is amended to change the consent thresholds or to say how a class with no votes is treated, or if a court decision explains what a class must do to consent.