Banko Ltd has a floating charge over all the undertaking and assets of Sonic Ltd. When...

 

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Banko Ltd has a floating charge over all the undertaking and assets of Sonic Ltd. When Sonic Ltd is placed in liquidation the floating charge belonging to Banko Ltd crystallises and becomes a fixed charge. Other creditors of Sonic Ltd at this time include BGRBNK plc, which holds a fixed charge over some of Sonic Ltd's assets, and Sonic Ltd's employees, who are owed remuneration and holiday pay. Which of the following describes the order of priority here with respect to the liquidation? a) b) c) e BGRBNK plc takes priority over Banko Ltd, which in turn takes priority over the employees of Sonic Ltd. The employees of Sonic Ltd take priority of BGRBNK plc, which in turn takes priority over Banko Ltd. Banko Ltd, BGRBNK plc and the employees of Sonic Ltd all rank equally. BGRBNK plc takes priority over the employees of Sonic Ltd who take priority over Banko Ltd. Banko Ltd has a floating charge over all the undertaking and assets of Sonic Ltd. When Sonic Ltd is placed in liquidation the floating charge belonging to Banko Ltd crystallises and becomes a fixed charge. Other creditors of Sonic Ltd at this time include BGRBNK plc, which holds a fixed charge over some of Sonic Ltd's assets, and Sonic Ltd's employees, who are owed remuneration and holiday pay. Which of the following describes the order of priority here with respect to the liquidation? a) b) c) e BGRBNK plc takes priority over Banko Ltd, which in turn takes priority over the employees of Sonic Ltd. The employees of Sonic Ltd take priority of BGRBNK plc, which in turn takes priority over Banko Ltd. Banko Ltd, BGRBNK plc and the employees of Sonic Ltd all rank equally. BGRBNK plc takes priority over the employees of Sonic Ltd who take priority over Banko Ltd.

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d BGRBNK plc takes priority over the employees of Sonic Ltd who take priority over Banko Ltd In the ... View the full answer