Thorniley and Another v HM Revenue and Customs and Another: ChD 5 Feb 2008

The court was asked whether the prescribed parts of the company’s net property (as defined in s.176A (6)) is available to satisfy any part of the debts due to a creditor which are secured by a floating charge in that creditor’s favour but cannot be paid out of the realisation of the net property due to a shortfall in the value of the security. In terms of the statute the question is whether ‘unsecured debts’ in s.176A(2) include the unsecured balance of the debts due to the floating charge holder or other secured creditor.


Patten J


[2008] EWHC 124 (Ch), [2008] 1 WLR 1516, [2008] BCC 213, [2008] Bus LR 1076, [2008] 1 BCLC 436




Insolvency Act 1986 176A


England and Wales


Updated: 04 July 2022; Ref: scu.264133