The company’s assets were subject to a floating charge. That had crystallised. The liquidators, after a voluntary winding up, sought to make the assets remaining after repayment of the sums secured, available to pay the costs of the winding up. The trustees of the debenture sought to appeal a finding that the assets were so available.
Held: Having come within section 40, it would later fall within section 175(2)(b) upon insolvency. If they had not been paid by the receiver for his purposes they were available to pay the liquidators costs.
Citations:
Gazette 25-Apr-2002, [2002] EWCA Civ 228
Links:
Statutes:
Insolvency Act 1986 40 175(2(b) 251
Jurisdiction:
England and Wales
Cited by:
Appeal from – Buchler and another (as joint liquidators of Leyland DAF Limited) v Talbot and another (as joint administrative receivers of Leyland DAF Limited) and Stichting Ofasec and others HL 4-Mar-2004
The liquidator sought to recover his expenses from assets charged under a floating charge in priority to the chargee.
Held: Barleycorn was decided in error. The liquidators costs incurred in an insolvent winding up were not to be charged . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Company
Updated: 05 June 2022; Ref: scu.167954
