Proceedings and compositions

If a court receives a petition for proceedings under the CERP Act, the court must determine what form of proceedings to apply: closed or open.

Previously a composition required the approval of all the creditors. A single creditor could block the restructuring efforts, this changes with the CE

The court may refuse to confirm a composition on its own motion or at the request of any of the voting creditors or shareholders.

Proper classification will be a central issue whenever the CERP Act comes into play.