Section 357 | Exception to section 354: insolvent creditors

(1)An impairment loss or release debit is not prevented from being brought into account by section 354 in relation to an amount accruing to a company (“the creditor”) if—

(a)condition A, B, C, D or E is met in relation to the creditor, and

(b)the amount accrues to the creditor at a time which is the relevant time for the condition in question.

(2)Condition A is that the creditor is in insolvent liquidation, and for this condition the relevant time is any time in the course of the winding up.

(3)Condition B is that the creditor is in insolvent administration, and for this condition the relevant time is any time in the course of the administration.

(4)Condition C is that the creditor is in insolvent administrative receivership, and for this condition the relevant time is any time when the appointment of the administrative receiver is in force.

(5)Condition D is that an appointment of a provisional liquidator is in force in relation to the creditor under section 135 of the Insolvency Act 1986 (c. 45) or Article 115 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), and for this condition the relevant time is any time when the appointment is in force.

(6)Condition E is that under the law of a country or territory outside the United Kingdom, circumstances exist corresponding to those described in condition A, B, C or D, and for this condition the relevant time is any time corresponding to that described in the case of the condition in question.

(7)Section 323 applies for interpreting this section as it applies for interpreting section 322(6).