692. Priorities where debentures secured by floating charge

Past version: effective from 21/10/2015 - 20/10/2015
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(1) This section applies where debentures of an LLP registered in the Abu Dhabi Global Market are secured by a charge that, as created, was a floating charge.
(2) If possession is taken, by or on behalf of the holders of the debentures, of any property comprised in or subject to the charge, and the LLP is not at that time in the course of being wound up, the LLP's preferential debts shall be paid out of assets coming to the hands of the persons taking possession in priority to any claims for principal or interest in respect of the debentures.
(3) "Preferential debts" means the categories of debts described in section 227 (preferential debts) of the Insolvency Regulations 2015.
(4) Payments under this section shall be recouped, as far as may be, out of the assets of the LLP available for payment of general creditors."