Section 237A: Power of Court to cram down

237A. Power of Court to cram down (1) Subject to subsection (5), this section shall apply where – (a) a deed of company arrangement between a company and its creditors or any class of its creditors has been voted on at the watershed meeting; (b) the creditors meant to be bound by the deed of company arrangement are placed in 2 or more classes of creditors for the purpose of voting on the deed of company arrangement at the relevant meeting; (c) at least one class of creditors resolves that the company executes the deed of company arrangement; and (d) at least one class of creditors does not resolve that the company executes the deed of company arrangement. (2) Notwithstanding section 232, the Court may, on the application of an administrator or, with leave of the Court, on the application of a company or creditor, approve the deed of company arrangement and order that the deed of company arrangement be binding on the company and all classes of creditors intended to be bound by the deed of company arrangement. (3) The Court shall not make an order under subsection (2) unless – (a) creditors representing at least 75 per cent in value of all creditors who are intended Acts 2020 247 to be bound by the deed of company arrangement voting in person, by proxy vote or by postal vote, have voted in favour of the deed of company arrangement; and (b) it is satisfied that no provision of the deed of company arrangement would be – (i) oppressive or unfairly prejudicial to, or unfairly discriminatory against, one or more of the creditors; or (ii) contrary to the interests of the company as a whole. (4) Subject to subsection (5), a deed of company arrangement that is binding pursuant to an order under subsection (2) shall be deemed to be a deed of company arrangement approved by all creditors at a watershed meeting held on the date of the order. (5) Sections 241, 262, 266(2)(a) and 266(3)(a) shall not apply to a deed of company arrangement which is binding pursuant to an order under subsection (2).