Crystallisation of Floating Charge and Liability to Pay Preferential Creditors

June 2011

The High Court has held that, under Irish law, preferential creditors in a winding up must be paid in priority to the claims of the holders of debentures under floating charges which crystallise before the commencement of the winding up. Frank O’Reilly, partner in Whitney Moore, reviews the ruling in an article published in the International Law Office Newsletter.