Reg 5.3B.03 - Eligibility criteria for restructuring

             (1)  For the purposes of paragraph 453C(1)(a) of the Act, the test for eligibility is that the total liabilities of the company on the day the restructuring begins must not exceed $1 million.

             (2)  For the purposes of paragraph 453C(1)(b) of the Act, a period of 7 years is prescribed.

             (3)  For the purposes of paragraph 453C(1)(c) of the Act, a period of 7 years is prescribed.

             (4)  For the purposes of paragraph 453C(2)(b) of the Act, a prescribed circumstance is that:

                     (a)  the other company is a related body corporate of the company in relation to which the eligibility criteria are to be met; and

                     (b)  the other company is, or has been:

                              (i)  under restructuring; or

                             (ii)  the subject of a simplified liquidation process; and

                     (c)  if subparagraph (b)(i) applies—the restructuring practitioner for the other company was appointed no more than 20 business days before the day on which the restructuring of the company in relation to which the eligibility criteria are to be met began; and

                     (d)  if subparagraph (b)(ii) applies—the other company began to follow the simplified liquidation process no more than 20 business days before the day on which the restructuring of the company in relation to which the eligibility criteria are to be met began.

Definitions

             (5)  In this regulation:

liability means any liability to pay an admissible debt or claim.