Moratorium Chapter 4: sets out the effect of moratorium on the company and its creditors Disposals of property free from charges
During the moratorium the company will be allowed to dispose of property subject to a security interest and goods which are the subject of a hire-purchase agreement with the permission of the court or in accordance with the terms of the security/agreement. Consent will only be given if the court thinks that the disposal will support the rescue of the company as a going concern. Where the court gives its permission in relation to such property, it is a condition of the permission that the net proceeds (which the court may determine as the net amount that would be realised on sale of the property at an open market value) of the disposal are applied towards discharging the sums secured or payable under the hire-purchase agreement.
	If a company contravenes certain provisions in this Chapter, it does not make any transaction void or unenforceable, nor does it affect the validity of any other thing.