On insolvency, the pari passu principle applies, meaning unsecured creditors rank equally in the distribution of available assets. That principle helps explain why a creditor who has obtained a judgment debt but has not completed enforcement (for instance by obtaining a final charging order) will usually be barred from doing so once insolvency intervenes. A … Continue Reading
In a short, but helpful judgment the court considered whether the stay imposed by s130(2) of the IA 1986 on actions or proceedings against a company in liquidation applied to a secured creditor exercising its power of sale. In confirming that it did not, the court outlined the purpose behind that provision and considered what … Continue Reading
