3.—(1) This Order shall, subject to paragraph (2), cease to have effect where—
(a)the licence granted under Article 8(1)(a) of the Gas Order authorising the holder to convey gas through the pipeline designated by Article 2 is assigned or revoked; or
(b)there is an insolvency event in relation to the holder.
(2) This Order shall not cease to have effect by virtue of paragraph (1)(a) where a licence granted under Article 8(1)(a) of the Gas Order authorising the holder to convey gas through the pipeline is assigned or revoked but is immediately replaced by a further such licence granted to the same person so as to preserve the continuity of the authorisation of that person to convey gas through the pipeline.
(3) For the purpose of paragraph (1)(b) an “insolvency event” occurs in relation to the licence holder referred to in that sub-paragraph if it:—
(a)is deemed unable to pay its debts (within the meaning of Article 103(1) or (2) of the Insolvency Order) or if any voluntary arrangement is proposed in relation to it under Article 14 of the Insolvency Order;
(b)has a receiver (which expression shall include an administrative receiver within the meaning of Article 5(1) of the Insolvency Order) of the whole or any material part of its assets or undertaking appointed;
(c)has an administration order under Article 21 of the Insolvency Order made in relation to it;
(d)has any resolution for winding up passed in relation to it; or
(e)becomes subject to an order for winding up by a court of competent jurisdiction.
(4) In paragraph (3)(a) the reference to Article 103(1) of the Insolvency Order shall be construed as a reference to that provision as if in sub-paragraph (a) for “£750” there was substituted “£250,000”.
(5) For the purposes of paragraph (3)(a), a person shall not be deemed to be unable to pay his debts if any such demand as is mentioned in Article 103(1)(a) of the Insolvency Order, is being contested in good faith by that person with recourse to all appropriate measures and procedures.