C3C4C5C6 Part VIII Individual Voluntary Arrangements

Annotations:
Modifications etc. (not altering text)
C3

Pt. VIII (ss. 252-263) applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 5

C4

Pt. VIII (ss. 252-263) restricted (6.4.1996 for the purpose only of authorising the making of regulations) by 1995 c. 26, ss. 91(3), 180(1) (with s. 121(5)); S.I. 1996/778, art. 2(5)(a). Sch. Pt. V

C5

Pt. VIII (ss. 252–263) applied with modifications by S.I. 1986/2142, arts. 1(2), 11, 13(3), 15

C6

Second Group of Parts (Pts. 8-11) modified (31.12.1996) by 1991 c. 57, Sch. 10 (as substituted by 1995 c. 25, s. 120(1), Sch. 22 para. 183 (with ss. 7(6), 115, 117); S.I. 1996/2909, art. 3)

Second Group of Parts (Pts. 8-11) modified (11.11.1999 for specified purposes and 6.4.2002 otherwise) by 1999 c. 30, s. 12(1); S.I. 2002/153, art. 2(b)

Consideration and implementation of debtor’s proposal

C1C2C7258F15Approval of debtor's proposal

F81

This section applies where under section 257 the debtor's creditors are asked to decide whether to approve the proposed voluntary arrangement.

2

The F9creditors may approve the proposed voluntary arrangement with F12or without modifications, but shall not F13approve it with modifications unless the debtor consents to each modification.

3

The modifications subject to which the proposed voluntary arrangement may be approved may include one conferring the functions proposed to be conferred on the nominee on another person qualified to act as an insolvency practitioner F1or authorised to act as nominee, in relation to the voluntary arrangement.

But they shall not include any modification by virtue of which the proposal ceases to be a proposal F1under this Part.

4

The F10creditors shall not approve any proposal or modification which affects the right of a secured creditor of the debtor to enforce his security, except with the concurrence of the creditor concerned.

5

Subject as follows, the F11creditors shall not approve any proposal or modification under which—

a

any preferential debt of the debtor is to be paid otherwise than in priority to such of his debts as are not preferential debts, F2...

F3aa

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,

b

a preferential creditor of the debtor is to be paid an amount in respect of F5an ordinary preferential debt that bears to that debt a smaller proportion than is borne to F6another ordinary preferential debt by the amount that is to be paid in respect of that other debt F4, F18...

c

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.F16or

d

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 F11creditors may approve such a proposal or modification with the concurrence of the F17... creditor concerned.

F146

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

In this section “preferential debt” F7, "ordinary preferential debt” and “secondary preferential debt” each has the meaning given by section 386 in Part XII; and “preferential creditor” is to be construed accordingly.