(1) Regulations 3 and 4 of these Regulations shall not apply to any transfer of an undertaking, business or part of an undertaking or business where the transferor is the subject of bankruptcy proceedings or insolvency proceedings.

(2) For the purposes of paragraph (1) bankruptcy proceedings or insolvency proceedings shall mean the following:

(a) proceedings whereby the transferor may be adjudicated bankrupt under section 14 or 15 of the Act of 1988;

(b) proceedings whereby the estate of a deceased transferor may be administered in bankruptcy under section 115 of the Act of 1988;

(c) where the transferor is a partnership, proceedings whereby all the members of the partnership may be adjudicated bankrupt under section 106 of the Act of 1988;