16(1)Section 322 (credits not required to be brought into account in respect of release of debt in certain cases) is amended as follows.U.K.
(2)In subsection (2), for “D” substitute “ E ”.
(3)Omit subsection (4A).
(4)After subsection (5A) insert—
“(5B)Condition E is that—
(a)the release is neither a deemed release, as defined by section 358(3), nor a release of relevant rights, and
(b)immediately before the release, it is reasonable to assume that, without the release and any arrangements of which the release forms part, there would be a material risk that at some time within the next 12 months the company would be unable to pay its debts.”
(5)After subsection (6) insert—
“(6A)In subsections (4) and (5B)(a), “relevant rights” has the same meaning as in section 358.”
(6)In subsection (7), after “Section” insert “ 323(A1) applies for the interpretation of subsection (5B)(b); and the rest of section ”.