Section 458G — Corporations Act 2001: Court order that company not eligible for temporary restructuring relief

(1) The Court may order that a company is not eligible for temporary restructuring relief if there are not reasonable grounds to believe any of the following: (a) the company is insolvent, or is likely to become insolvent before the declaration under paragraph 458E(1)(a) expires; (b) the eligibility criteria for restructuring would be met in relation to the company if a restructuring practitioner were appointed on any day after notice of the declaration made under subparagraph 458E(1)(a)(i) is published on which the declaration has not expired; (c) the company has taken all reasonable steps to appoint a restructuring practitioner; (d) the company will take all reasonable steps to appoint a restructuring practitioner before the expiry of the declaration made by the company under subsection 458E(1). (2) The Court may make an order under subsection (1): (a) on the application of: (i) a creditor of the company; or (ii) ASIC; or (b) on the Court’s own initiative. (3) If the Court makes an order in relation to a company under subsection (1), the directors of the company must within 5 business days after the order is made: (a) publish notice of the order in the prescribed manner; and (b) give ASIC a copy of the order. Note: Failure to comply with this subsection is an offence (see subsection 1311(1)). (4) Nothing in this section limits the power of the Court to make an order that a company is not eligible for temporary restructuring relief for any other reason.