Paragraph 35

Section 361 (acquisition of creditor rights by connected company at undervalue) is amended as follows.

In subsection (1), for paragraph (f) substitute—

“(f)

the equity-for-debt exception (see section 361C) does not apply.”

Omit subsection (2).

After subsection (6) insert—

“(7)

Subsections (3) and (4) are subject to section 361D (corporate rescue: debt released shortly after acquisition).”