Section 4(4)

Subject as follows, neither the company nor its creditors may approve any proposal or modification under which— However, ... such a proposal or modification may be approved with the concurrence of the ... creditor concerned. any preferential debt of the company is to be paid otherwise than in priority to such of its debts as are not preferential debts, ... any ordinary preferential debt of the company is to be paid otherwise than in priority to any secondary preferential debts that it may have, a preferential creditor of the company 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 company 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 in the case of a company which 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).

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