Paragraph 25 C1F1

Paragraph 73 is modified so as to read as follows—

“73.

(1)

An administrator’s statement of proposals under paragraph 49 may not include any action which—

(a)

affects the right of a secured creditor of the partnership to enforce his security,

(b)

would result in a preferential debt of the partnership being paid otherwise than in priority to its non-preferential debts, F2...

(F3bb)

would result in an ordinary preferential debt of the partnership being paid otherwise than in priority to any secondary preferential debts that it may have,

(c)

would result in one preferential creditor of the partnership being paid a smaller proportion of F4an ordinary preferential debt than another F5F6...

(d)

would result in one preferential creditor of the partnership being paid a smaller proportion of a secondary preferential debt than another F7or

(e)

the company is a relevant financial institution (see section 387A), any non-preferential debt is to be paid otherwise than in accordance with the rules in section 176AZA(2) or (3).

(2)

Sub-paragraph (1) does not apply to—

(a)

action to which the relevant creditor consents, or

(b)

a proposal for a voluntary arrangement under Part I of this Act (although this sub-paragraph is without prejudice to section 4(3)).

(3)

The reference to a statement of proposals in sub-paragraph (1) includes a reference to a statement as revised or modified.”.