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The exclusion recognises that such arrangements are usually heavily negotiated and the parties have provided for specific rules which apply should a party become insolvent.
Legal Dictionary Lawcom. The stay falls away if and when the party goes into receivership or liquidation, and can otherwise only be lifted on application to the Federal Court.
Termination-on-Bankruptcy Provisions Some Proposed.
What steps a director should take will depend on the circumstances but, in some cases, will mean immediately ceasing to trade and placing the company into an insolvency proceeding. If the nondebtor party is not a bank or financial institution, presumably the nondebtor would not be in a good position to assess compliance with financial covenants imposed in some other contract.
Corporations Regulations or Corporations Act, which may lead to questions as to their interpretation in some cases.For Plans Prescription
The relevant alternative is whatever the court considers would be most likely to occur in relation to the company if the compromise or arrangement were not sanctioned by the court. Our people are experts of law; progressive thinkers, in tune with economic, political and market conditions, driven to help to provide the clear commercial advice you need to achieve business success. The ipso facto stay was not intended to prevent Governments from terminating Government issued licences, permits or approvals on the grounds of a relevant insolvency event, if not entering the insolvency event was a condition.And Guidance
Although it may be unpleasant to negotiate and plan for the bankruptcy of either party to a license, such initial additional efforts will prove worthwhile in the long run should a bankruptcy become a reality.Reference