If a receiver is appointed under a charge which, as created, was a floating charge and the company is not at the time in the course of being wound up, preferential debts1must be paid out of the floating charge assets in priority to the debenture-holder2. This rule does not apply to fixed charge assets, but it cannot be avoided by crystallising the floating charge before appointing the receiver. If there are uncharged assets which have been released or otherwise excluded from the floating charge, the payments to preferential creditors may be recouped
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