Section 1112I | Transactions aimed at obtaining credit or relief to be disregarded ^F1

(1)To the extent that a transaction is attributable to arrangements entered into for a disqualifying purpose, it is to be disregarded in ascertaining a company’s entitlement to relief under this Part.

(2)Arrangements are entered into for a disqualifying purpose if their main purpose, or one of their main purposes, is to enable a company to obtain relief under this Part—

(a)to which it would not otherwise be entitled, or

(b)of greater amount than that to which it would otherwise be entitled.