Commentary

244 Ranking and abatement of preferential debts

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)
| Commentary

244 Ranking and abatement of preferential debts

| Commentary

244 Ranking and abatement of preferential debts

Ordinary preferential debts having priority under the Insolvency Act 19861 rank equally among themselves after the expenses of the winding up and must be paid in full, unless the assets are insufficient to meet them, in which case they abate in equal proportions. Secondary preferential debts rank equally amongst themselves after the ordinary preferential debts and must be paid in full unless the assets are insufficient to meet them in which case they abate in equal proprtions2. If the assets of the company available for payment of general creditors are

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