Hey Mike, bpp says the costs of selling assets, liquidator remuneration and all the other liquidation expenses are higher in order than secured creditors (fixed charge)
Where as acca study hub says fixed charge first and then liquidation expenses.
The rest of the order of priority is same in both
Also a general advice I have preferred Bpp up till now would it be wise to switch to hub now? Is Bpp reliable? I don’t have time to switch now
Ask the Tutor ACCA LW
Priority in compulsory winding up
3y ago#1How does this make sense?!!! 'Also a general advice I have preferred Bpp up till now would it be wise to switch to hub now? Is Bpp reliable? I don’t have time to switch now'
I fyou don't have time, it's academic!
However, I have always found BPP to be 'reliable' but, of course, mistakes can and do happen. In this regard, I don't believe that BPP is any more at fault / any less reliable than Kaplan.
As for fixed charge holders and liquidator's costs ... consider your position as a fixed charge lender holder the title documents for the asset that is the subject of your security. Along comes the liquidator and asks you for those title documents.
Can you guess what your response might be ... in just 2 words?
I have actually asked this same question of a liquidator. Following some humming and hahhing, he conceded that the liquidator and the fixed charge lender would need to discuss their respective positions - but my personal belief is that the fixed charge lender would take control of the asset ... and the liquidator that I asked did not demur
OK?
So you agree with fixed first and liquidation expenses second, like the ACCA study hub?
3y ago#3Well, yes. But that route leads to conflict with the liquidator. When I used to stand in front of a room full of students, I would classify the two parties as 1=.
In practice, there HAS TO BE some conversation, discussion, negotiation between the two.
But my personal feeling is that fixed will win.
OK?
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