Commentary

164 Avoidance of certain floating charges

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

164 Avoidance of certain floating charges

| Commentary

164 Avoidance of certain floating charges

Under Section 245 of the Insolvency Act 1986, where a company has entered administration or has gone into liquidation, the court can set aside a floating charge except to the extent that it secures the value of money paid, or goods or services supplied, to the company at or after the creation of the charge, or the value of the discharge or reduction at or after the creation of the charge of another debt of the company, together with interest.

Where the holder of the floating charge is connected with the company, a charge

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