Loan relationships: consortia companies and impairment: how the restriction works: example
When the Chapter 7 restriction applies: example
FD Ltd is a consortium company. It is owned
40% by RT plc, the holding company of a large group
40% by WD Ltd, a subsidiary of KX plc
20% by MC Ltd, a singleton company.
Any amount that is written off a loan made
RT plc (consortium member) or any of its subsidiaries (group members)
WD Ltd (consortium member), its holding company or any of its fellow group members, or
MC Ltd (consortium member)
or, if FD Ltd is a holding company, any subsidiary (within CTA10/Part5) of FD Ltd
will fall within CTA09/PT5/CH7.