Schedule 3, paragraph 31(3)

Before paragraph 65 (but after the italic heading “Distribution”) insert— This paragraph applies where a company enters administration before the end of the period of 12 weeks beginning with the day after the end of any moratorium for the company under Part A1. The administrator must make a distribution to the creditors of the company in respect of— moratorium debts (within the meaning given by section 174A), and priority pre-moratorium debts (within the meaning given by section 174A). A sum payable under sub-paragraph (2) is to be paid in priority to— any security to which paragraph 70 applies or paragraph 115(1) applies; any sums payable under paragraph 99. The administrator must realise any property necessary to comply with sub-paragraph (2). The rules may make provision as to the order in which the moratorium and priority pre-moratorium debts rank among themselves for the purposes of this paragraph in a case where the assets of the company are insufficient to meet them in full.

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