Part 5Loan Relationships
Chapter 7Group relief claims involving impaired or released consortium debts
368Reduction of claims where there are earlier net consortium debits
(1)
This section applies if—
(a)
for any group accounting period there is a claim by the member company or a group member for group relief in respect of an amount which may be surrendered as group relief by debtor consortium companies, and
(b)
the total amount of the net consortium debits for earlier group accounting periods in respect of the relevant consortium creditor relationships exceeds any reductions in respect of those debits falling to be made under section 365(4).
(2)
In this section that excess is referred to as “the unreduced debits amount”.
(3)
If—
(a)
the claim is the only claim for that period, and
(b)
it exceeds the unreduced debits amount,
the claim is reduced by the unreduced debits amount.
(4)
If—
(a)
the claim is not the only claim for that period, and
(b)
the total of the claims exceeds the unreduced debits amount,
the claim is reduced by the same proportion of the unreduced debits amount as the claim bears to that total.
(5)
In any other case, the claim is reduced to nil.