Debt with equivalent rights and obligations

CTA09/S338(1) and (2) provide that references, to one company replacing another as party to a loan relationship, include references to a company becoming party to a loan relationship with equivalent rights and obligations. The concepts of ‘equivalent rights’ and ‘equivalent obligations’ are defined in CTA09/S338(3) and (5).

Rights under one loan relationship are equivalent to rights under another if they entitle the holder to

the same rights, against the same person, to capital, interest and dividends, and

the same remedies for enforcing those rights

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