Bar to creditors’ claims
7 Bar to creditors’ claims
Subject to section 444D of the Act this deed may be pleaded by the company against any creditor in bar of any debt or claim that is admissible under this deed and a creditor (whether the creditor’s debt or claim is or is not admitted or established under this deed) must not, before the termination of this deed:
take or concur in the taking of any step to wind up the company; or
except for the purpose and to the extent provided in this deed, institute or prosecute any legal proceedings in relation to any debt incurred or alleged to have been incurred by the company before the day when the administration began; or
take any further step (including any step by way of legal or equitable execution) in any proceedings pending against or in relation to the company at the day when the administration began; or
exercise any right of set‑off or cross‑action to which the creditor would not have been entitled had the company been wound up at the day when the administration began; or
commence or take any further step in any arbitration against the company or to which the company is a party.
This Act’s bill:Explanatory statement
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