125.

Arrangement order

(1)Immediately after the creditor’s meeting under section 124, the proposed supervisor shall report the
result of the meeting to court.(2)Where the meeting declines to approve a proposed arrangement, the
court may discharge, vary or extend the interim order or make any other appropriate order as the court
considers fit and the debtor shall be given only one more opportunity to present a second proposal
for arrangement.(3)Where the meeting approves a proposed arrangement, with or without
modifications, the court may—(a)make an arrangement order;(b)make such ancillary directions as the
court considers fit; or(c)where the individual is an undischarged bankrupt, give such directions on the
conduct of the bankruptcy and the administration of the bankrupt’s estate as the court considers
appropriate,for facilitating the implementation of the arrangement.

126. Notice of arrangement

Immediately after the arrangement order is made, the supervisor shall—(a)send to each known creditor
a written notice showing that an arrangement has taken effect; and(b)give public notice that
an arrangement has taken effect.

127. Post arrangement financing

(1)A supervisor may, with the consent of the creditors and with the approval of Court, obtain or borrow
finances and grant security over the property of the debtor for the purposes of implementing
the arrangement.(2)The post arrangement financing referred to in subsection (1) shall not exceed the
value of the debtor’s unencumbered assets at the time of the arrangement order.

128. Effect of arrangement

(1)Subject to subsection (3), an arrangement binds—(a)the individual in respect of whom

the arrangement order is made;(b)the supervisor of the arrangement; and(c)all the individual’s creditors
for claims arising on or before the day specified in the voluntary arrangement.(2)Subject to
subsection (3), a person bound by an arrangement shall not—(a)make an application for a bankruptcy
order or proceed with an application made before the arrangement became binding on the person;
(b)appoint a receiver of any property of the individual or commence or continue with an application to
appoint a receiver; or(c)except with the leave of the court and in accordance with the terms as the court
may impose—(i)take any other steps to enforce any charge over any of the individual’s property;
or(ii)commence or continue other proceedings, execution or other legal process or levy distress against
the individual or his or her property.(3)Subsections (1) and (2) shall not prevent a secured creditor from
realising or dealing with charged property except so far as the arrangement provides for a secured
creditor who voted in favour of the resolution resulting in the arrangement.

129. Function of supervisor

The supervisor shall supervise the implementation of the arrangement and he or she shall on the day of
his or her appointment notify the Official Receiver in writing of the appointment.
130. Creditors’ meetings during arrangement

(1)The supervisor may call a creditors’ meeting at any time.(2)The supervisor shall call a creditors’
meeting if requested in writing by creditors, the value of whose claims against the individual is not less
than ten percent of the value of all claims against the individual.(3)Subject to this section, the meeting
shall be conducted in accordance with Schedule 3 to this Act.(4)A creditors’ meeting has the power to
call for reports on the progress of the arrangement from the supervisor.

131. Remuneration of supervisor

A supervisor is entitled to—(a)the remuneration specified in the arrangement; or(b)the remuneration as

the court may fix on application of the supervisor where no remuneration is specified.

132. Vacation of office of supervisor

(1)The office of supervisor shall become vacant if the person holding office is removed from office under
section 138 or 208 or resigns, dies or becomes unqualified under section 213.(2)A supervisor may resign
from the office of supervisor by appointing, with the approval of the creditors and the insolvent,
another insolvency practitioner as his or her successor and delivering notice of the appointment in
writing, to the court.(3)The court, on the application of any creditor may review any appointment of a
successor to a supervisor made under subsection (2) and for the court considers appropriate, may
appoint instead any other insolvency practitioner.(4)Where as the result of the vacation of office by a
supervisor, no person is acting as supervisor, the Official Receiver shall act temporarily as supervisor and
he or she may with the approval of the insolvent and his or her creditors, appoint an insolvency
practitioner as successor.(5)A person vacating the office of supervisor shall give information and
assistance on the conduct of the voluntary arrangement as his or her successor may reasonably require.
(6)Any person who contravenes subsection (5) commits an offence and is liable, on conviction, to a fine
not exceeding twenty-four currency points or to imprisonment for a term not exceeding one year, or
both.

133. Variation of arrangement

(1)On application of any person who is bound by an arrangement order, court may vary the order in
whole or in part and subject to such conditions as the court considers fit.(2)Where the supervisor
discovers an asset after an arrangement order has been made, the asset shall be distributed using
the arrangement agreed upon and the variation of the arrangement.

134. Termination of arrangement

An arrangement terminates if—(a)the court makes an order terminating the arrangement under
section 135; or(b)circumstances specified in the arrangement deed for terminating the arrangement,
occur.

135. Termination of arrangement by court

(1)An application for the termination of an arrangement may be made to court by any person who is
bound by the arrangement and where the individual is an undischarged bankrupt, by the trustee of his
or her estate.(2)Subject to subsection (3), the court may make an order terminating the arrangement on
terms and conditions as the court considers fit.(3)The court may make the order under subsection (2), if
the court is satisfied that—(a)the supervisor or creditors were given information about
the individual’s property, affairs or financial circumstances that was false or misleading or that the
information which can reasonably be expected to have been material to creditors in deciding whether to
vote in favour of the arrangement was not given to them;(b)the report made to court under
section 123 contained information which was misleading or omitted information which can reasonably
be expected to have been material to creditors in deciding whether to vote in favour of
the arrangement;(c)a person bound by the arrangement has failed to comply with his or her obligations
under the arrangement;(d)the individual has failed to do anything under the arrangement reasonably
required of him or her by the supervisor;(e)the arrangement cannot be completed without injustice or
undue delay;(f)the arrangement is—(i)oppressive or unfairly prejudicial or unfairly discriminatory
against, one or more creditors; or(ii)contrary to the interests of creditors as a whole;
or(g)the arrangement should be terminated for any other reason.(4)Except as otherwise ordered by the
court, a copy of any application made under this section shall be served on the supervisor not less than
five working days before the hearing of the application and the supervisor may appear and be heard at
the hearing.

136. Notice on termination of arrangement

Where an arrangement is terminated, the supervisor shall—(a)send notice of the termination to each
creditor;(b)give public notice of the termination; and(c)notify the Official Receiver in writing.