| Commentary

144 Distribution to creditors

| Commentary

144 Distribution to creditors

The administrator of a company may make a distribution to creditors of the company1. The Insolvency Act 1986 section 175 applies in relation to such a distribution as it applies in relation to a winding up2. A payment may not be made by way of distribution to a creditor of the company who is neither secured nor preferential unless the court gives permission3. The separate code in Insolvency Rules 19864 relating to such distributions, which in most respects followed the equivalent provisions for proof of debts and distributions

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