Article 13DJ Restrictions on payment of certain pre-moratorium debtsF1

During a moratorium, the company may make one or more relevant payments to a person that (in total) exceed the specified maximum amount only if—

In paragraph (1)—

• “relevant payments” means payments in respect of pre-moratorium debts for which the company has a payment holiday during the moratorium (see Article 13D);

• “specified maximum amount” means an amount equal to the greater of—

  1. (a)

     £5000, and

  2. (b)

     1% of the value of the debts and other liabilities owed by the company to its unsecured creditors when the moratorium began, to the extent that the amount of such debts and liabilities can be ascertained at that time.

The monitor may give consent under paragraph (1)(a) only if the monitor thinks that it will support the rescue of the company as a going concern.

In deciding whether to give consent under paragraph (1)(a), the monitor is entitled to rely on information provided by the company unless the monitor has reason to doubt its accuracy.

If the company makes a payment to which paragraph (1) applies otherwise than as authorised by that paragraph—