Should we redistribute in insolvency

John Armour

Working Papers from Centre for Business Research, University of Cambridge

Abstract: The characterisation of a security interest as 'fixed' or 'floating' has generated much litigation in English courts. This is because a floating charge is subordinated by statute to other claims in the debtor's insolvency, whereas a fixed charge is not. This paper uses the example of the floating charge to argue that such statutory redistribution between claimants in corporate insolvency is generally undesirable.

Keywords: corporate insolvency; law and finance; history of floating charge; bankruptcy priorities; secured credit. (search for similar items in EconPapers)
JEL-codes: G32 G33 H23 K22 N43 (search for similar items in EconPapers)
Date: 2006-03
New Economics Papers: this item is included in nep-cfn, nep-fin, nep-fmk, nep-law, nep-pbe and nep-reg
Note: PRO-2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.jbs.cam.ac.uk/wp-content/uploads/2023/05/cbrwp319.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbr:cbrwps:wp319

Access Statistics for this paper

More papers in Working Papers from Centre for Business Research, University of Cambridge
Bibliographic data for series maintained by Ruth Newman ().