(1) Where proposals for a compromise or scheme of arrangement are to be formulated in relation to a credit union, the credit union may, subject to the approval of the Court, affirm or repudiate any contract under which some element of performance other than payment remains to be rendered both by the credit union and the other contracting party or parties.

(2) Any person who suffers loss or damage as a result of such a repudiation shall stand as an unsecured creditor for the amount of the loss or damage.

(3) In order to facilitate the formulation, consideration or confirmation of a compromise or scheme of arrangement, the Court may hold a hearing and make an order determining the amount of any such loss or damage as is referred to in subsection (2) and the amount so determined shall be due by the credit union to the creditor as a judgement debt.

(4) Where the examiner is not a party to an application to the Court for the purposes of subsection (1), the credit union shall serve notice of the application on the examiner, and the examiner may appear and be heard on the hearing of the application.