When can creditors' proposals be considered accepted in the deemed consent process?

In the deemed consent process for creditors' proposals, acceptance occurs when less than 10% of creditors object to the proposal. This allows for a streamlined approach to tackling proposals without requiring a full vote, which can be time-consuming and complex. The assumption in this context is that if less than 10% of creditors express an objection, the remaining majority is considered to support the proposal, thus facilitating smoother financial negotiations and restructuring efforts among companies.

If more than 10% of creditors were to object, the proposal would not be accepted, indicating significant opposition that necessitates further discussion or formal voting. Similarly, if all creditors were to vote in favor, it would also indicate a clear consensus, but that is a different scenario from the deemed consent process which specifically considers objections. Additionally, if no creditors respond at all, the proposal would also not be deemed accepted since the lack of engagement does not reflect a consensus.

Therefore, the correct understanding of when creditors' proposals are accepted in the deemed consent process centers around the threshold of objections, which is set deliberately at less than 10% to allow for efficiency in handling proposals.