Winding-up and Restructuring Act

Marginal note:Aircraft objects

22.2 Nothing in this Act prevents a creditor who holds security on aircraft objects — or a lessor of aircraft objects or a conditional seller of aircraft objects — under an agreement with a company in respect of which an application for a winding-up order is made for the reason set out in paragraph 10(c) from taking possession of the equipment

• (a) if, after the commencement of proceedings under this Act, the company defaults in protecting or maintaining the equipment in accordance with the agreement;

• (b) sixty days after the commencement of proceedings under this Act unless, during that period, the company

  • (i) remedied the default of every other obligation under the agreement, other than a default constituted by the commencement of proceedings under this Act or the breach of a provision in the agreement relating to the company’s financial condition,

  • (ii) agreed to perform the obligations under the agreement, other than an obligation not to become insolvent or an obligation relating to the company’s financial condition, until the day on which proceedings under this Act end, and

  • (iii) agreed to perform all the obligations arising under the agreement after the proceedings under this Act end; or

• (c) if, during the period that begins on the expiry of the sixty-day period and ends on the day on which proceedings under this Act end, the company defaults in performing an obligation under the agreement, other than an obligation not to become insolvent or an obligation relating to the company’s financial condition.