PART 3Amendments of Insolvent Partnerships Order 1994
Amendments of Schedule 1 to the Insolvent Partnerships Order 1994I112
1
Schedule 1 to the Insolvent Partnerships Order 1994 (modified provisions of Part 1 of, and Schedule A1 to, the Insolvency Act 1986 (company voluntary arrangements) as applied by Article 4)21, is amended as follows.
2
In modified section 4(4) (decisions of meetings)—
a
omit the “or” at the end of paragraph (a);
b
after paragraph (a) insert—
aa
any ordinary preferential debt of the partnership is to be paid otherwise than in priority to any secondary preferential debts that it may have,
c
in paragraph (b)—
i
for “a preferential debt”, substitute “an ordinary preferential debt”, and
ii
for “another”, substitute “another ordinary”;
d
at the end of paragraph (b), insert—
or
c
a preferential creditor of the partnership 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 modified section 4(7) after “preferential debts” insert “, ordinary preferential debts, secondary preferential debts”.