This effect is accepted by the external financiers and ratings agencies as meeting their requirements. 70 Assumptions—separate schemes exist if the aggregation rule is disregarded (1) Assume that, Division 974 of the Act: (a) the issuing of the shares in S Co (as part of the stapled securities) is a scheme (the that gives rise to equity interests in S Co; and share scheme) (b) the issuing of the units in R Trust (as part of the stapled securities) is a separate scheme (the that does not give rise to equity interests unit scheme) or debt interests; and (c) the external loan is a separate scheme (the that gives external loan scheme) rise to a debt interest in S Co; and (d) the internal loan is a separate scheme (the that gives internal loan scheme) rise to a debt interest in S Co. (2) Disregard the aggregation rule for the purposes of these assumptions.
This effect is accepted by the external financiers and ratings agencies as meeting their requirements. 70 Assumptions—separate schemes exist if the aggregation rule is disregarded (1) Assume that, Division 974 of the Act: (a) the issuing of the shares in S Co (as part of the stapled securities) is a scheme (the share scheme) that gives rise to equity interests in S Co; and (b) the issuing of the units in R Trust (as part of the stapled securities) is a separate scheme (the unit scheme) that does not give rise to equity interests or debt interests; and (c) the external loan is a separate scheme (the external loan scheme) that gives rise to a debt interest in S Co; and (d) the internal loan is a separate scheme (the internal loan scheme) that gives rise to a debt interest in S Co. (2) Disregard the aggregation rule for the purposes of these assumptions.
C2016-033_Exposure_Draft_Instrument.docx