The same flexible provisions of Part 15 of the Corporations Act can be used to enter into agreements between a company and its creditors. Creditor agreements may, in appropriate circumstances, be powerful instruments of restructuring, but they have been less used in New Zealand. The (withdrawn) opposition to the effects on bondholders emphasizes that even in the case of an actuator plan, the rights of creditors must be carefully considered. Where a plan can be invoked as a substantial change in a creditor`s legal situation or as a sufficient reference to the rights or interests of creditors, it may be necessary to approve the system: Re CMPS-F PTY Ltd (1997) 15 ACLC 1.287. It should be noted, however, that the Court`s first response to the potential impact on bondholders was that Metlifecare will remain bound by its contractual obligations to bondholders when issuing debt securities on the open market. This reminds creditors that, where possible, creditors must consider « change of control » consents and other safeguards in their contractual provisions. A copy of the verdict can be found here. Metlifecare`s largest shareholder, New Zealand Superannuation Fund Nominees Ltd, which owns 19.86% of the company, has agreed to vote in favour of the program. On 5 July, the APVG submitted a non-binding offer to acquire Metlifecare, which operates senior villages.
The scheme will be implemented at the end of October. The parties had confirmed themselves in a dispute, but had agreed to settle all disputes relating to the initial agreement on the implementation of the program. The new regime is expected to be implemented by the end of October. The head of Metlifecare Ellis does not recommend that shareholders vote in favour of the revised plan. Director Carolyn Steele declined to make the recommendation because it is related to NZ Super. Metlifecare`s largest shareholder, the New Zealand Superannuation Fund, has agreed to vote in favour of the scheme on conditional terms. Under the new regulatory agreement, a new advisory report should be prepared in accordance with the guidelines of the management body. A schematic brochure detailing the special meeting and a copy of the new independent advisor`s report is expected to be sent to shareholders in early September.