3.1 Application of Part 3

This Part applies to a Company if an Administrative Receiver is appointed on behalf of the Secured Parties under a Security Interest over all or substantially all of the undertaking of the Company.

3.2 Priority of payment of Preferential Debts

3.2.1 If the Company is not at the time in the course of being wound up, its Preferential Debts must be paid out of the assets coming to the hands of the Administrative Receiver in priority to any claims for principal or interest in relation to the obligations of the Company secured by the Security Interest over all or substantially all of the undertaking of the Company.

3.2.2 Payments made under this rule must be recouped, as far as possible, out of the assets of the Company available for payment of general creditors.