Citation and commencement

1.  This Order may be cited as the Insolvency (Northern Ireland) Order 1989 (Prescribed Part) (Amendment) Order (Northern Ireland) 2022 and comes into operation on 4^thNovember 2022.

The Insolvency (Northern Ireland) Order 1989 (Prescribed Part) Order (Northern Ireland) 2006 amendment and transitional provision

2.—(1) The Insolvency (Northern Ireland) Order 1989 (Prescribed Part) Order (Northern Ireland) 2006( 3) is amended as follows–

(2) In Article 3(2) for “£600, 000” substitute “£800,000”.

(3) The substitution made by paragraph (2) does not apply where the company’s net property is available to be distributed to the holder of a relevant floating charge.

(4) A relevant floating charge is one–

(a) created before the date this Order comes into operation, and

(b) in respect of which no floating charge over any of the company’s assets created on or after that date ranks equally or in priority.

EXPLANATORY NOTE

(This note is not part of the Order)

The Insolvency (Northern Ireland) Order 1989 (Prescribed Part) Order (Northern Ireland) 2006 ( S.R. 2006 No. 25) sets out the method of calculation of the prescribed part. The prescribed part is the part of the property of a company that a liquidator, administrator, or receiver must reserve for unsecured creditors, under Article 150A of the insolvency (Northern Ireland) Order 1989, and which would otherwise be available to satisfy claims secured by a floating charge. The prescribed part is subject to a limit.

This Order increases the limit on the value of the prescribed part from £600,000 to £800,000.

The increased limit does not apply, where the company’s net property is available to be distributed to the holder of a first ranking floating charge created before this Order comes into operation.

A full impact assessment has not been produced for this rule as it has minimal impact on the private, voluntary and public sectors.

An Explanatory Memorandum has been published alongside this instrument atwww.legislation.gov.uk