The Water Industry (Special Administration) (England and Wales) Rules 2024

Administration: mutual dealings and set-off (rule 14.24)

103.  Rule 14.24 has effect as if, in paragraph (6), for the definition of “mutual dealings” there were substituted—

““mutual dealings” means mutual credits, mutual debts or other mutual dealings between the company and a creditor proving or claiming to prove for a debt in the special administration, but does not include any of the following—

(a)

a debt arising out of an obligation incurred after the company entered special administration;

(b)

a debt arising out of an obligation incurred at a time when the creditor had notice that—

(i)

a petition was pending for the winding up of the company in respect of which the court granted the special administration order;

(ii)

an application for a special administration order was pending;

(c)

any debt which has been acquired by a creditor by assignment or otherwise, under an agreement between the creditor and another party where that agreement was entered into at a time—

(i)

after the company entered special administration;

(ii)

when the creditor had notice that a petition was pending for the winding up of the company in respect of which the court granted the special administration order;

(iii)

when the creditor had notice that an application for a special administration order was pending.”.