Section 258(5)

Subject as follows, the creditors shall not approve any proposal or modification under which— any preferential debt of the debtor is to be paid otherwise than in priority to such of his debts as are not preferential debts, ... any ordinary preferential debt of the debtor is to be paid otherwise than in priority to any secondary preferential debts that the debtor may have, a preferential creditor of the debtor is to be paid an amount in respect of an ordinary preferential debt that bears to that debt a smaller proportion than is borne to another ordinary preferential debt by the amount that is to be paid in respect of that other debt , ... a preferential creditor of the debtor is to be paid an amount in respect of a secondary preferential debt that bears to that debt a smaller proportion than is borne to another secondary preferential debt by the amount that is to be paid in respect of that other debt. or if the debtor 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 328(3A) (reading references to the bankrupt as references to the debtor), However, the creditors may approve such a proposal or modification with the concurrence of the ... creditor concerned.

← 4 · All articles · 6 →

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