R&I Update - August 2022 – 6 / 7 观点
Voting rights in Austrian restructuring proceedings (which require the approval of more than half the creditors holding more than half of the company's debt) are often contested, as the company's assets are liquidated if the creditors vote against the proposed restructuring or debt cut.
Secured creditors may only participate in the vote with the unsecured part of their claim and must file an application for the right to vote. It was unclear whether such an application for a voting right for a specific amount could subsequently be changed.
In this case, if the secured creditor was unable to increase its vote, the restructuring would not be approved. The Austrian Supreme Court held:
The decision shows the importance of seeking professional preparation of a debt relief application.
To discuss the issues raised in this article in more detail, please contact a member of our Restructuring & Insolvency team.
作者 Luke Viner