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Hey
Whats the difference between
1. Fixed Chargeholders & Secured Creditors
2. Floating chargeholders and unsecured creditors
Fixed chargeholders’ debts are secured by a charge over a specific asset
Secured creditors are those that rank in priority over others in the payment of their debts from the general funds in the liquidation
Floating chargeholders’ debts are secured by a charge over the general assets (typically the current assets of inventory and receivables) in priority to the unsecured creditors
Unsecured creditors rank in priority above only the shareholders of the company
Ok?
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