Paragraph 27

Schedule B1 (administration) is amended as follows.

Omit paragraph 25.

Before paragraph 66 (but after the italic heading “Distribution”) insert—

“65A

(1)

This paragraph applies where a company enters administration before the end of the period of 12 weeks beginning with the day after the end of any moratorium under Part 1A.

(2)

The administrator must make a distribution to the creditors of the company in respect of—

(a)

moratorium debts (within the meaning given by Article 148A), and

(b)

priority pre-moratorium debts (within the meaning given by Article 148A).

(3)

A sum payable under sub-paragraph (2) is to be paid in priority to—

(a)

any security to which paragraph 71 applies;

(b)

any sums payable under paragraph 100.

(4)

The administrator must realise any property necessary to comply with sub-paragraph (2).

(5)

The rules may make provision as to the order in which the moratorium and priority pre-moratorium debts rank among themselves for the purposes of this paragraph in a case where the assets of the company are insufficient to meet them in full.”

In paragraph 66, for sub-paragraph (1) substitute—

“(1)

If the assets of a company are sufficient to meet any debts or other liabilities payable under paragraph 65A in full, the administrator of the company may make a distribution to any other creditor of the company.”

In paragraph 67, for “The administrator of a company” substitute “ If the debts or other liabilities payable under paragraph 65A have been met, the administrator of a company ”.