240 Receivership orders in relation to cells

(1) Subject to the provisions of this section, if in relation to a protected cell
in relation to cells
company the Court is satisfied —

(a) that the cellular assets attributable to a particular cell of the
company (and, where the company has entered into a recourse
agreement, the assets liable under that agreement) are or are
likely to be insufficient to discharge the claims of creditors in
respect of that cell;

(b) that the making of an administration order in respect of that cell
would not be appropriate; and

(c) that the making of an order under this section would achieve the
purposes set out in subsection (3),

the Court may make an order under this section (a „receivership order“)
in respect of that cell.

(2) A receivership order may be made in respect of one or more cells.

(3) A receivership order is an order directing that the business and cellular
assets of or attributable to a cell shall be managed by a person specified
in the order („the receiver“) for the purposes of —

(a) the orderly winding up of the business of or attributable to the
cell; and


(b) the distribution of the cellular assets attributable to the cell (and,
where the company has entered into a recourse agreement, the
assets liable under that agreement) to those entitled to have
recourse thereto.

(4) A receivership order —

(a) may not be made if —

(i) a liquidator has been appointed to act in respect of the
protected cell company; or

(ii) the protected cell company has passed a resolution for
voluntary winding up;

(b) may be made in respect of a cell subject to an administration
order; and

(c) shall cease to be of effect upon the appointment of a liquidator
to act in respect of the protected cell company, but without
prejudice to prior acts.

(5) No resolution for the voluntary winding up of a protected cell company
any cell of which is subject to a receivership order shall be effective
without leave of the Court.