1. The proposal

The RP proposal will be sent to creditors or members and filed at Court.

2. First Court hearing (convening hearing)

The Court will examine the classes of creditors and members as defined by the company. Creditors or members may challenge class formation if they think the company’s classes don’t accurately reflect the rights and interests of different classes. The plan company may also seek to exclude certain classes of creditors or members on the basis that they have no genuine economic interest in the company.

3. Confirmation

If satisfied, the Court will confirm that a vote on the proposal may be conducted on a specified date ahead of a second hearing, if required. Necessary information would be requested. This would be anything that creditors or members need to decide whether to support the proposal, including certain mandatory matters that must be covered in all cases.

4. Plan meetings

Vote of creditors and members. If no challenges are brought or counter-proposals permitted by the Court, then creditors or members will vote on the proposal.

5. Second Court hearing (sanction hearing)

Subject to the requisite voting thresholds being met, and the rules for imposing a cross-class cram down being complied with (should it be necessary), the Court will the schedule a second hearing. At this hearing, it’ll consider if the necessary requirements have been met. The Court will then make a decision whether or not to approve the RP and make it binding on affected creditors or members.