Schedule 7, paragraph 27

Schedule B1 (administration) is amended as follows. Omit paragraph 25. Before paragraph 66 (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 under Part 1A. The administrator must make a distribution to the creditors of the company in respect of— moratorium debts (within the meaning given by Article 148A), and priority pre-moratorium debts (within the meaning given by Article 148A). A sum payable under sub-paragraph (2) is to be paid in priority to— any security to which paragraph 71 applies; any sums payable under paragraph 100. 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. In paragraph 66, for sub-paragraph (1) substitute— If the assets of a company are sufficient to meet any debts or other liabilities payable under paragraph 65A in full, the administrator of the company may make a distribution to any other creditor of the company. In paragraph 67, for “The administrator of a company” substitute “ If the debts or other liabilities payable under paragraph 65A have been met, the administrator of a company ”.

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