What about the original creditors in business rescue?
Last month, the High Court put out a ruling for creditors in business rescue, saying that they can’t vote on rescue plans for companies they’re investing in. Since then, there have been divided views on the matter. On the one hand, it could have significant implications for post-commencement finance if creditors aren’t able to vote on plans that have a material outcome on the future of the company they’re trying to invest in. On the other hand, people feel that it’s unfair that post-commencement financiers have the right to vote on business rescue plans that could prejudice prior creditors.