In this Group of Parts, except in so far as the context otherwiserequires—
(a) “secured creditor”, in relation to a company, means a creditor of the company who holds in respect of his debt a security over property of the company, and “unsecured creditor” is to be read accordingly; and
(b) “security” means—
(i)in relation to England and Wales, any mortgage, charge, lien or other security, and
(ii)in relation to Scotland, any security (whether heritable or moveable), any floating charge and any right of lien or preference and any right of retention (other than a right of compensation or set off).
Cases considering section 248 8
[2024] EWHC 1491 (Ch) · 17 June 2024Defines
Defines “secured creditor” by reference to security over company property and requires “unsecured creditor” to be read accordingly unless the context otherwise requires. The court held that preferential creditors fall within this definition for paragraph 83. (see paras [8]-[10])
[2024] EWHC 1425 (Ch) · 11 June 2024Interprets
The court interpreted the definition of secured creditor as requiring a presently existing debt owed by the company which is secured. A creditor paid in full is no longer a secured creditor for Schedule B1 purposes, so its consent is unnecessary. (see paras [25]-[28])
[2022] EWHC 1877 (Ch) · 19 July 2022Interprets
Provides a wide definition of security, but pool creditors’ interests were treated as more closely analogous to priority claims from a specified fund than ordinary security. (see paras [38]-[42])
1 more judgment, and what each says about section 248, are in the
case-law panel in the full Act.