Transfer of guarantor assets during insolvency requires creditor approval and routes sale proceeds into the relevant resolution process.

Transfer of assets of a personal guarantor or corporate guarantor of a corporate debtor may be permitted during the corporate insolvency resolution process where a creditor has already taken possession by enforcing a security interest under an applicable law empowering transfer. The transfer requires prior approval of the committee of creditors and, in specified cases, approval thresholds of sixty-six per cent of voting share or more than three-fourths in value of creditors. Transfer proceeds form part of the relevant insolvency resolution, bankruptcy process, or liquidation estate.

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