Part ISocial Rented Sector regulated by the Welsh Ministers
Chapter IV General powers of the Relevant Authority
Insolvency, &c. of registered social landlord
44 Proposals as to ownership and management of landlord’s land.
(1)
During the moratorium (see sections 42 and 43) F1the Welsh Ministers may make proposals as to the future ownership and management of the land held by the registered social landlord, designed to secure the continued proper management of the landlord’s land by a registered social landlord.
(2)
In drawing up its proposals F1the Welsh Ministers—
(a)
shall consult the landlord and, so far as is practicable, its tenants, and
(b)
shall have regard to the interests of all the landlord’s creditors, both secured and unsecured.
(3)
The F2Relevant Authority shall also consult—
(a)
where the landlord is F3a registered society, the appropriate registrar, and
(b)
where the landlord is a registered charity, the F4Charity Commission .
(4)
No proposals shall be made under which—
(a)
a preferential debt of the landlord is to be paid otherwise than in priority to debts which are not preferential debts, F5...
F6(aa)
an ordinary preferential debt of the landlord is to be paid otherwise than in priority to any secondary preferential debts that the landlord may have,
(b)
(c)
a preferential creditor is to be paid a smaller proportion of a secondary preferential debt than another preferential creditor, except with the concurrence of the creditor concerned. F10or
(d)
if the landlord is a relevant financial institution—
(i)
an ordinary non-preferential debt of the landlord is to be paid otherwise than in priority to any secondary non-preferential debts of the landlord,
(ii)
a secondary non-preferential debt of the landlord is to be paid otherwise than in priority to any tertiary non-preferential debts of the landlord, or
(iii)
a secondary non-preferential creditor is to be paid a smaller proportion of a secondary non-preferential debt of the landlord than another secondary non-preferential creditor, except with the concurrence of the creditor concerned.
In this subsection references to preferential debts F11, ordinary preferential debts, secondary preferential debts F12, ordinary non-preferential debts, secondary non-preferential debts, tertiary non-preferential debts, relevant financial institution and preferential creditors have the same meaning as in the M1Insolvency Act 1986.
(5)
So far as practicable no proposals shall be made which have the effect that unsecured creditors of the landlord are in a worse position than they would otherwise be.
(6)
Where the landlord is a charity the proposals shall not require the landlord to act outside the terms of its trusts, and any disposal of housing accommodation occupied under a tenancy or licence from the landlord must be to another charity whose objects appear to F1the Welsh Ministers to be, as nearly as practicable, akin to those of the landlord.
(7)
The F2Relevant Authority shall serve a copy of its proposals on—
(a)
the landlord and its officers,
(b)
the secured creditors of the landlord, and
(c)
any liquidator, administrator, administrative receiver or receiver appointed in respect of the landlord or its land;
and it shall make such arrangements as it considers appropriate to see that the members, tenants and unsecured creditors of the landlord are informed of the proposals.