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Companies Act 1993

Voluntary administration - Execution and effect of deed of company arrangement

239ACN: Preparation and contents of deed

You could also call this:

“Rules for creating a document that sets out how a company in voluntary administration will pay its debts”

When a company is in voluntary administration, the deed administrator must create a document that outlines the terms of the deed. This document needs to include several important details:

You need to know who the deed administrator is. The document will list what property the company has that can be used to pay creditors. This includes property the company already owns and property it might get in the future.

The document will explain if there’s a time when the company doesn’t have to pay its debts right away, and how long this period will last. It will also say how much of the company’s debts will be cancelled.

You’ll find out if there are any conditions that need to be met before the deed can start working, and any conditions that need to be met for it to keep working. The document will also explain when the deed will end.

The document will tell you the order in which creditors will be paid from the money made by selling the company’s property. It will also set a date, called the cut-off day, which is the latest date that a debt can be from if it’s going to be included in the deed. This date can’t be later than the day the administration began.

The document will automatically include any rules that the law says must be in there, unless the document specifically says it’s not including them.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321596.

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239ACM: When this subpart applies, or

“This section explains when the rules for company arrangements decided by creditors apply”

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239ACO: Execution of deed, or

“How a company signs a deed of arrangement during voluntary administration”

Part 15A Voluntary administration
Execution and effect of deed of company arrangement

239ACNPreparation and contents of deed

  1. The deed administrator must prepare a document that sets out the terms of the deed.

  2. The document must also specify the following:

  3. who the deed administrator is:
    1. the property of the company (whether or not it is already owned by the company when it executes the deed) that will be available to pay creditors:
      1. the nature and duration of any moratorium period for which the deed provides:
        1. to what extent the company will be released from its debts:
          1. the conditions (if any) for the deed to come into operation:
            1. the conditions (if any) for the deed to continue in operation:
              1. the circumstances in which the deed terminates:
                1. the order in which the proceeds of realisation of the property referred to in paragraph (b) will be distributed among creditors who are bound by the deed:
                  1. the day (which is called the cut-off day and which must not be later than the day when the administration began) on or before which creditors' claims must have arisen if they are to be admissible under the deed.

                    1. The document is treated as including any prescribed provisions, except those prescribed provisions that the document expressly excludes.

                    Compare
                    • Corporations Act 2001 s 444A(3)–(5) (Aust)
                    Notes
                    • Section 239ACN: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).