[F113—(1) A company is excluded from being eligible if, on the filing date—N.I.
(a)it is a party to an agreement which is or forms part of a capital market arrangement (see sub-paragraph (2)),
(b)a party has incurred, or when the agreement was entered into was expected to incur, a debt of at least £10 million under the arrangement (at any time during the life of the capital market arrangement), and
(c)the arrangement involves the issue of a capital market investment (see paragraph 14).
(2) For the purposes of this paragraph, an arrangement is a “capital market arrangement” if any of the following applies—
(a)it involves a grant of security to a person holding it as trustee for a person who holds a capital market investment issued by a party to the arrangement;
(b)at least one party guarantees the performance of obligations of another party;
(c)at least one party provides security in respect of the performance of obligations of another party;
(d)the arrangement involves an investment of a kind described in articles 83 to 85 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (options, futures and contracts for differences).
(3) For the purposes of sub-paragraph (2)—
(a)a reference to holding a security as trustee includes a reference to holding it as nominee or agent,
(b)a reference to holding for a person who holds a capital market investment includes a reference to holding for a number of persons at least one of whom holds a capital market investment, and
(c)a reference to holding a capital market investment is to holding a legal or beneficial interest in it.
(4) For the purposes of sub-paragraph (1)(b), where a debt is denominated wholly or partly in a foreign currency, the sterling equivalent is to be calculated as at the time when the arrangement is entered into.]
F1Sch. ZA1 inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 5 (with ss. 2(2), 5(2), 13)
Modifications etc. (not altering text)