The payment by a debtor of an outstanding debt to a third party in a three-party relationship, such as where a subsidiary company pays its parent company’s debt to a third party, should not automatically be considered as a legal act of the debtor in exchange for no or manifestly inadequate consideration. In such cases, the payment by the debtor can be reciprocal to the performance by the third party of its obligation to the parent company, which might have given the debtor a direct or indirect advantage, and the third party might not have had the possibility to reject the payment by the debtor.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
