Liabilities and rights of co-obligants
44.—(1) Where a creditor has an obligant (in this Rule referred to as the “co-obligant”) bound to the creditor along with the energy supply company for the whole or part of the debt, the co-obligant shall not be freed or discharged from liability for the debt by reason of the dissolution of the energy supply company or by virtue of the creditor’s voting or drawing a dividend or assenting to, or not opposing—
(a)a scheme of arrangement; or
(b)a company voluntary arrangement.
(2) Where—
(a)a creditor has had a claim accepted in whole or in part; and
(b)a co-obligant holds a security over any part of the assets of the energy supply company,
the co-obligant shall account to the energy administrator so as to put the energy supply company in the same position as if the co-obligant had paid the debt to the creditor and thereafter had had the co-obligant’s claim accepted in whole or in part in the energy supply company administration after deduction of the value of the security.
(3) Without prejudice to any right under any rule of law of a co-obligant who has paid the debt, the co-obligant may require and obtain at the co-obligant’s own expense from the creditor an assignation of the debt on payment of the amount thereof, and thereafter may in respect of that debt submit a claim, and vote and draw a dividend, if otherwise legally entitled to do so.
(4) In this Rule a “co-obligant” includes a cautioner.