The Petition

1
The Petition

• Identify the petitioner
• Insolvency or near insolvency
• No liquidation
• (Receiver for less than 30 days)
• Includes current statement of assets and
  liabilities
• Description of business and basis for reasonable
  prospects of survival as going concern
• Nomination of examiner

2
Assessment of solvency
3
Verifying Affidavit

• Evidence showing good reason for seeking
  examinership
• Nature of business and numbers of employees
• Trading history and reasons for insolvency
• Prospects for business if restructured
• Evidence of support from creditors
• Evidence of interest from potential investors
• Independent experts report

4
Separate Affidavit of compliance

• Formal affidavit regarding
• Service
• Advertising
• Companies Registration Office filing

5
The Independent Experts Report

• Statutory information
• Statement of affairs as at recent date
• Opinion on reasonable prospect of survival as a
  going concern
• Opinions and recommendations
• Details of funding required for examinership
  period
• Payment of pre-petition liabilities
• Formation of creditors committee

6
Investment Required

• The level of investment
• Working capital needs
• Examinership fees and expenses
• Cost of the proposed scheme
• Terms of Investment
• Equity (classes of shares)?
• Loans/subordinated loans?

7
Proposals for a Scheme of Arrangement

• Specify the classes of members and creditors
• Specify the impaired classes and any class not
  impaired
• Provide the same treatment for each member of a
  class
• Provide for implementation (investment agreement
  and/or realisation of assets)
• Specify changes to memo and arts, management and
  board of company

8
Proposals for a Scheme of Arrangement

• Retain business premises if possible
• Statement of assets and liabilities (going
  concern)
• Statement of assets and liabilities (on
  liquidation)

9
Explanatory Memorandum

• History of trading and source of difficulties
• Statement of classes and treatment of classes
• Explain source of funding for scheme and any
  amount to be retained in business for working
  capital
• Disclosure of directors interests and any
  differing effect on them

10
Examiners Report to Court

• Includes proposals and any modifications
• Details of attendance and votes at meetings
• Statement of assets and liabilities at date of
  report
• List of creditors, including values and security
• Any recommendations
• Recommendations of the creditors committee
• Formal proofs

11
Examiners Affidavit

• Exhibits report
• States proposals are just and equitable and
  not unfairly prejudicial
• Sets out agreed level of investment
• Exhibits trading outcome during examinership
• Sets out basis for scheme as providing for
  survival as a going concern

12
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