Schedule 16, 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, or would result in one preferential creditor of the company being paid a smaller proportion of his debt than another. 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)), or a proposal for a compromise or arrangement to be sanctioned under section 425 of the Companies Act (compromise with creditors or members). 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