HL Deb 23 October 1985 vol 467 cc1251-2

221A Page 70, line 2, after ("charge") insert— ("(aa) the value of so much of that consideration as consists of the discharge or reduction, at the same time as, or after, the creation of the charges, of any debt of the company;").

221B Page 70, line 4, after ("paragraph (a)") insert ("or (aa)").

221C Page 70, line 6, leave out ("or").

221D Page 70, line 6, at end insert ("or the debt was so discharged or reduced").

These amendments achieve the purpose aimed at by the noble Lord's amendment and are specifically related to the discharge by the relevant third party of an exisitng debt owed by the company. I hope that the noble Lord will be able to accept what I have said, and I hope that he will accept my grateful thanks for drawing this matter to our attention. He also raised the question of the floating charges in respect of such consideration. I do not know whether he would like me to deal with that point, or whether he added that in support of the argument rather than as a special issue.

Lord Bruce of Donington

My Lords, I am sorry that the noble Lord cannot accept the amendment, although he cited the case law in support of it. Apparently he is reluctant to enshrine in the statute something that is already established in the case law he cited. I am not prepared to argue with him at all about it. I intended to help him. If he does not need the help, it can rest where it is. I beg leave to withdraw the amendment.

Amendment to the Motion, by leave, withdrawn.

On Question, Motion agreed to.