Section 398. Moratorium

(1) A moratorium in a voluntary arrangement commences automatically from the time of filing of the following documents by the company to the Court:

(a) a document setting out the terms of the proposed voluntary arrangement;

(b) a statement of the company’s affairs containing—

(i) the particulars of the company’s creditors and of its debts and other liabilities and of its assets; and

(ii) other information;

(c) a statement that the company is eligible for a moratorium;

(d) a statement from the nominee that he has given his consent to act;

(e) a statement from the nominee; and

(f) a statement disclosing the full particulars of previous proposed voluntary arrangements or an application for moratorium and the results of the application, if any.

(2) The Eighth Schedule shall have effect with respect to—

(a) companies eligible for a moratorium;

(b) the duration and extension of the moratorium;

(c) the effects of the moratorium; and

(d) the procedures applicable in relation to the approval and implementation of a voluntary arrangement where such a moratorium is or has been in force.