TYPE OF CHARGES

Fixed charge creditors - all explained within the video lectures! OK?

Exactly, so the answer given behind Kaplan kit which says Floating charge creditors is wrong? Also the company is liquidating in this case

Unless you've not typed out the full question (and I suspect that you haven't!) it seems to me that the Kaplan answer is incorrect There has to be SOME funds set aside for the creditors ranking lower down the order of distribution but I'm not aware of any situation where the floaters are paid in presence to the fixed OK?

The full question is; In context of company finance which of the following is usually paid FIRST on liquidation of a company? A. Floating charge creditors B. Ordinary shareholders C. Fixed charge creditors D. Preference shareholders And the answer given is A. Also, I’m genuinely so grateful for your lecture of this topic and all other topics.. you’re my new favorite, you’ve explained it so well Sir, thanks a ton!!!!

Thanks for the full question and also for your kind comments Good luck with your law studies and, remember, keep enjoying it!