The Banks and Building Societies (Depositor Preference and Priorities) Order 2014

Moratorium where directors propose voluntary arrangement and preferential debts

21.—(1) Schedule A1 to the Insolvency (Northern Ireland) Order 1989 (moratorium where directors propose voluntary arrangement)(1) is amended as follows.

(2) In paragraph 41(5)—

(a) omit the “or” at the end of sub-paragraph (a);

(b) after sub-paragraph (a) insert—

“(aa) any ordinary preferential debt of the company is to be paid otherwise than in priority to any secondary preferential debts that it may have,”;

(c) in sub-paragraph (b)—

(i) for “a preferential debt”, substitute “an ordinary preferential debt”, and

(ii) for “another”, substitute “another ordinary”;

(d) at the end of sub-paragraph (b), insert—

“or

(c) a preferential creditor of the company 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.”.

(3) In paragraph 41(8), after “preferential debts” insert “, ordinary preferential debts, secondary preferential debts”.

(1)

Schedule A1 was inserted by S.I. 2002/3152 (N.I. 6). There are a number of amendments to Schedule A1 but none are relevant to this Order.