The Insolvency (Scotland) Regulations 2003

Conversion of trust deed into sequestration U.K.

16.  After section 59 of the Act insert–

“59A.    Petition for conversion into sequestration

(1) Where a member State liquidator proposes to petition the court for the conversion under Article 37 of the EC Regulation (conversion of earlier proceedings) of a protected trust deed into sequestration, an affidavit complying with section 59B of this Act must be prepared and sworn, and lodged in court in support of the petition.

(2) The petition and the affidavit required under subsection (1) above shall be served upon–

(a) the debtor;

(b) the trustee;

(c) such other person as may be prescribed.

59B.    Contents of affidavit

(1) The affidavit shall–

(a) state that main proceedings have been opened in relation to the debtor in a member State other than the United Kingdom;

(b) state that the member State liquidator believes that the conversion of the trust deed into a sequestration would prove to be in the interests of the creditors in the main proceedings;

(c) contain such other information the member State liquidator considers will be of assistance to the court–

(i) in deciding whether to make an order under section 59C; and

(ii) if the court were to do so, in considering the need for any consequential provision that would be necessary or desirable; and

(d) contain any other matters as may be prescribed.

(2) An affidavit under this section shall be sworn by, or on behalf of, the member State liquidator.

59C.    Power of court

(1) On hearing the petition for conversion of a trust deed into a sequestration the court may make such order as it thinks fit.

(2) If the court makes an order for conversion into sequestration the order may contain all such consequential provisions as the court deems necessary or desirable.

(3) Where the court makes an order for conversion into sequestration under sub-section (1) above, any expenses properly incurred as expenses of the administration of the trust deed in question shall be a first charge on the debtor’s estate.”.