Lords reverses 25-year-old ruling on creditor payment

Harris, Joanne
July 2005
Lawyer;7/11/2005, Vol. 19 Issue 27, p10
Trade Publication
Reports that the House of Lords in Great Britain has overturned a decision made 25 years ago that has governed the way creditors are paid in insolvency cases in connection with the National Westminster Bank PLC versus Spectrum Plus Ltd. case. Decision of Vice-Chancellor Andrew Morritt on the National Westminster's charge over Spectrum Plus's debts; Benefits of court decision for lenders; Essentiality of additional security, such as guarantees from a company's directors as a result of the ruling for lenders.


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