CIRP - Admission of Section 7 application - The tribunal ...

Tribunal Upholds Section 7 Insolvency Application, Confirms Default Admission as Key; Limits Moratorium to Principal Only.

March 29, 2024

Case Laws     Insolvency and Bankruptcy     AT

CIRP - Admission of Section 7 application - The tribunal meticulously assessed evidence, including correspondence, loan agreements, and bank statements, to determine the existence and timing of defaults. It found the appellant's admission of default in correspondence significant and rejected arguments of uncertainty regarding default dates. Additionally, the tribunal clarified that the moratorium applied only to principal amounts, not interest payments, as per restructuring terms. - In conclusion, the tribunal upheld the decision to admit the Section 7 application, dismissing the appeal.

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