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

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, but 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.