Debt financing

Re Yorkshire Woolcombers

• If a charge has the following characteristics it is a floating charge

• 1. Charge on a certain class of assets

• 2. Class would change from time to time in the ordinary course of business

• The company may carry on it's business in the ordinary way in relation to that class of asset

Bankruptcy and Diligence (Scotland) Act

• Crystallisation may only take place after winding up commenced or appointment of administrative receiver, company ceasing to carry on business

Registration of charges

21 days to register or will be a unsecured loan

Priority

• Fixed

• Liquidation Expenses

• Preferential debts (Employee claims, pension schemes, tax liabilities)

• Floating charge holders