Atlantic Risk Management launches Crown Preference Review

Atlantic Risk Management launches Crown Preference Review

6 January 2021 by Erik Timmermans

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Atlantic have launched a Crown Preference review to assist Lenders and their Clients to make sure that the Borrowing Base Calculations take into account this New Legislation.

The change in the UK’s Crown Preference Rule came into Law on the 1st December 2020. This rule creates a preference for specific Government Liabilities accumulated up until that date and thereafter.
The legislation gives the Government preference before any Floating Charge Holder & unsecured creditor claims in insolvency.
Assets subject to a Floating Charge include Inventory and Accounts Receivables and other Asset Classes.
As well as the Prescribed Part and Employee provisions, Lenders also now need to provide for VAT, PAYE and NIC in the Borrowing Base Calculation.
For more information on the Rule Change and our Crown Preference Review, please contact Tayla Mason tmason@atlanticrms.com and request a Crown Preference Information Pack.

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