Companies Act 2014 section 558ZAA

Incurring of certain liabilities by process adviser

Section 558ZAA deals with liabilities incurred by an eligible company during the rescue period and how these are treated as expenses of the process adviser, thereby supporting continued trading.

• Liabilities incurred by an eligible company during the rescue period can be treated as expenses properly incurred by the process adviser
• This treatment gives such liabilities priority status under the rules governing the rescue process
• The process adviser must certify in writing, at the time each liability is incurred, that the company's survival as a going concern would otherwise be seriously prejudiced
• The provision encourages creditors such as suppliers to continue engaging with the company during the rescue process