In some legal systems, preferential creditors take priority over all other creditors, including creditors holding security, but more commonly the preferential creditors are only given priority over unsecured creditors.
22.
Meanwhile, the Law Reform Commission, in a consultation paper to amend laws for the Winding-Up Provisions of the Companies Ordinance, has suggested removing employees'and the government's preferential creditor status.
23.
In 2001 recovery rates were found to be 53 % of one's debt for secured lenders, 35 % for preferential creditors but only 7 % for unsecured creditors on average.
24.
Such arrangements cannot affect the rights of secured creditors or preferential creditors without their consent, and require the consent of 75 % of creditors by value and a majority in number.
25.
He said there was a floating charge throughout, so the company s preferential creditors were entitled in a receivership to priority under IA 1986 s 40 with regard to uncollected debts.
26.
If that be right, it is perfectly clear that rule 195 requires that the assets of the company should be used to meet these costs in preference to the claims of either preferential creditors or debenture holders.
27.
Some legal systems operate a hybrid approach; in the United Kingdom preferential creditors have priority over secured creditors whose security is in the nature of a floating charge, but creditors with fixed security take ahead of the preferential creditors generally.
28.
Some legal systems operate a hybrid approach; in the United Kingdom preferential creditors have priority over secured creditors whose security is in the nature of a floating charge, but creditors with fixed security take ahead of the preferential creditors generally.
29.
In " New Bullas " the preferential creditors argued that the charge was a floating charge because the company was indeed free to withdraw the book debts from the security, which it could do simply by collecting them and using the proceeds in the ordinary course of its business.
30.
Because of the differences in priority of fixed charges and floating charges, security documents came to be drafted to contain as many charges expressed to be fixed charges as possible, and leave as little as possible covered by the floating charge, where it would have secondary priority to the claims of the preferential creditors.
