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Regards with the order of payments on liquidation, what is the ‘prescribed part’ and i don’t understand the explanation of it. Could you please explain in simple way and using some examples for it.
It’s a way of ensuring that there will be some money in a liquidation for the benefit of unsecured payables where previously the holder of a floating charge debenture would take everything up to the value of the secured debt
So the prescribed part ring-fences some of the available funds that will then be distributed amongst the unsecured payables
The amounts involved are:
50% of the first 10,000 pounds
20% of the rest up to the overall amount of 600,000 pounds
Thanks for the explanations