Schedule B1, paragraph 73

An administrator’s statement of proposals under paragraph 49 may not include any action which— affects the right of a secured creditor of the company to enforce his security, would result in a preferential debt of the company being paid otherwise than in priority to its non-preferential debts, ... would result in an ordinary preferential debt of the company being paid otherwise than in priority to any secondary preferential debts that it may have, would result in one preferential creditor of the company being paid a smaller proportion of an ordinary preferential debt than another , ... would result in one preferential creditor of the company being paid a smaller proportion of a secondary preferential debt than another. or if the company is a relevant financial institution (see section 387A), would result in any non-preferential debt being paid otherwise than in accordance with the rules in section 176AZA(2) or (3). Sub-paragraph (1) does not apply to— action to which the relevant creditor consents, a proposal for a voluntary arrangement under Part I of this Act (although this sub-paragraph is without prejudice to section 4(3)), . . . a proposal for a compromise or arrangement to be sanctioned under Part 26 or 26A of the Companies Act 2006 (arrangements and reconstructions) ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The reference to a statement of proposals in sub-paragraph (1) includes a reference to a statement as revised or modified.

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Source: legislation.gov.uk · retrieved 2026-09-04