October 2017

Payment of preferential debts out of assets subject to floating charge not permitted

The Supreme Court recently considered whether, within the meaning of Section 237 of the Companies (Winding-up Amendment) Act, preferential creditors have any claim against the moneys received by receiver-managers for the sale of assets subject to a charge.  Joint official liquidators applied for an order regarding whether there was any entitlement for preferential debts to be paid, pursuant to Section 237, to creditors of one or more of the Baha Mar Companies in priority to the claims of holders of debentures under any floating charge created by such companies. 

The full article written by Sophia Rolle-Kapousouzoglou, for http://www.internationallawoffice.com/  can be downloaded here