BusinessBusiness RecoveryRevenue gets Spectrum boost

Revenue gets Spectrum boost

House of Lords rules in government's favour

A court case affecting the eventual destination of hundreds of millions of
pounds was decided today in the government’s favour.

A House of Lords decision on the status of claims on the assets of insolvent
companies ruled that the government, as a preferential creditor, came ahead of
banks holding ‘floating’ charges on the assets.

The ‘Spectrum’ case, as it is known, is likely to release assets from an
estimated 550 insolvencies, left in limbo by legal uncertainty. Lawyers for
Allen & Overy, acting for NatWest in the Spectrum case, say the figure of
550 could itself by ‘very conservative.’

Millions of pound may be held up in those cases, it is assumed.

A 1979 case had appeared to indicate that banks held the first claim, but
that was thrown into confusion recently. The Spectrum case was fought to resolve
the issue.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

5m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

5m Emma Smith, Managing Editor