The following Restructuring & Insolvency practice note Produced in partnership with South Square provides comprehensive and up to date legal information covering:
The order of distribution in liquidation, following the realisation of security by secured creditors (other than those with floating charges) for their benefit, is as follows:
where liquidation occurs within 12 weeks of a moratorium, any moratorium debts and ‘priority pre-moratorium debts’ for which the company did not have a payment holiday during the moratorium but which were not paid
expenses (including the remuneration of the liquidator (see: section 115 of the Insolvency Act 1986 (IA 1986), Insolvency (England and Wales) Rules (IR 2016), SI 2016/1024, rr 6.42, 7.108)
ordinary preferential debts (see: IA 1986, ss 175, 386 and Sch 6)
secondary preferential debts (see: IA 1986, ss 175, 386 and Sch 6)
any charge that was originally a floating charge but has become a fixed charge
floating charges (save for the prescribed part for unsecured creditors where not disapplied) (see: IA 1986, s 175(2), Commissioners of Customs & Excise v Royal Bank of Scotland, IA 1986, s 176A, Re Airbase (UK) and Re Permacell Finesse (in liquidation)  (not reported by LexisNexis®)))
statutory Interest (IA 1986, s 189(2))
postponed debts (ie non-provable liabilities)
return of any surplus to members (subject to adjustment between members—see: IA 1986, s 72(2)(f)
For further information, see Practice Note: Waterfall of payments in liquidation—the position under the Insolvency (England and Wales) Rules 2016.
The order of distribution of
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