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How does a PIA come into effect?

Following the issue of a Protective Certificate a PIA will be formulated by the PIP, agreed by you, approved by a qualified majority of your creditors voting at a creditors’ meeting, processed by the ISI, approved by the Court and details of it registered in a public register maintained by the ISI. The three following creditor thresholds have to be met for the PIA proposal to be approved at the creditors’ meeting:

  • Total debt Creditors, representing 65% or more of the total amount of debts due, participating and voting at the meeting, vote in favour of the proposal.
  • Secured debt Creditors, representing more than 50% of the value of secured debts, participating and voting at the meeting, vote in favour of the proposal. For this purpose the value of a secured debt is the lesser of the value of the security or the amount of the debt.
  • Unsecured debt Creditors, representing more than 50% of the amount of unsecured debts, participating and voting at the meeting, vote in favour of the proposal. A more detailed breakdown of the process is contained in Part 3 of this guide.