2

For the purpose of dividend (and no other purpose) the amount of the creditor’s admitted proof (or, if a distribution has previously been made to him, the amount remaining outstanding in respect of his admitted proof) shall be reduced by applying the following formula—

$\genfrac{}{}{0.1ex}{}{X}{1.05{}^n}$

where—

a

“X” is the value of the admitted proof; and

b

“n” is the period beginning with the relevant date and ending with the date on which the payment of the creditor’s debt would otherwise be due expressed in years and months in a decimalised form.

3

In paragraph (2) “relevant date” means—

a

in the case of a winding up which was not immediately preceded by an administration, the date that the company went into liquidation;

b

in the case of a winding up which was immediately preceded by an administration, the date that the company entered administration; and

c

in the case of a bankruptcy, the date of the bankruptcy order.