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Notes for Guidance - Protected Trust Deeds - Bankruptcy (Scotland) Act 2016

This guidance describes the general functions of Accountant in Bankruptcy and trustees in relation to their responsibilities regarding protected trust deeds (PTDs) which were granted on or after 30 November 2016

6.11 Supply of utilities to a business

Section 222 of the 2016 Act extends to trustees under PTDs. This provision allows the trustee to request a supply of gas, electricity, water or telecommunications for the purposes of the debtor’s business. This only applies where the debtor continues to run a business, and includes not-for-profit businesses.

A utility supplier can require the trustee to accept personal liability for the on-going costs of supply but cannot make supply condition on the payment of the debtor’s outstanding liability for arrears. This means that a utility supplier cannot effectively create a preference as a condition of allowing a business to continue. This may mean that the debtor’s business is able to continue trading where it is in the best interest of creditors of the debtor to do so.

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