Empty Second Charge Holder can Share in the Prescribed Part
Mondaq Business Briefing › United Kingdom Law Articles in English (2010)
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Empty Second Charge Holder can Share in the Prescribed Part
In the recent decision of Re PAL SC Realisations 2007 Ltd [2010] EWHC 2850 (Ch), the Court confirmed that a secured creditor of a company, which is in administration or liquidation, whose security is valueless, can release the security in its entirety and share in the "prescribed part" in respect of its (formerly secured) debt.
What is the prescribed part? The "prescribed part" in insolvency proceedings is a share of the net proceeds realised from the sale of property covered by floating charges. It is provided for by section 17...See the full content of this document
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