Prescribed part
A ring-fenced portion of floating-charge realisations in certain company insolvencies that is made available for unsecured creditors under statutory rules.
Related terms
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Floating charge
Security over a changing class of company assets, such as stock or receivables, allowing the company to deal with them in the ordinary course of business until the charge crystallises.
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Unsecured creditor
A creditor without specific security over the debtor’s assets, normally ranking behind secured and preferential claims in insolvency.
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Preferential creditor
A creditor given statutory priority for certain debts in insolvency, ranking ahead of ordinary unsecured creditors.
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