Rule 36 Liabilities and rights of co-obligants
Where a creditor has an obligant (in this Rule referred to as the “co-obligant”) bound to him along with the protected energy company for the whole or part of the debt, the co-obligant shall not be freed or discharged from his liability for the debt by reason of the dissolution of the protected energy company or by virtue of the creditor’s voting or drawing a dividend.
Where–
a creditor has had a claim accepted in whole or in part; and
a co-obligant holds a security over any part of the assets of the protected energy company,
the co-obligant shall account to the energy administrator so as to put the protected energy company in the same position as if the co-obligant had paid the debt to the creditor and thereafter had had his claim accepted in whole or in part in the energy administration after deduction of the value of the security.
Without prejudice to any right under any rule of law of a co-obligant who has paid the debt, the co-obligant may require and obtain at his own expense from the creditor an assignation of the debt on payment of the amount thereof, and thereafter may in respect of that debt submit a claim, and vote and draw a dividend, if otherwise legally entitled to do so.
In this Rule a “co-obligant” includes a cautioner.