Payments of certain debts out of assets subject to floating charge in priority to claims under charge
—(1) Where a receiver is appointed on behalf of the holders of any debentures of a company secured by a floating charge or possession is taken by or on behalf of debenture holders of any property comprised in or subject to a floating charge, then, if the company is not at the time in the course of being wound up, debts which in every winding up are preferential debts and are due by way of wages, salary, retrenchment benefit or ex gratia payment, vacation leave or superannuation or provident fund payments and any amount which in a winding up is payable in pursuance of section 328(4) or (6) shall be paid out of any assets coming to the hands of the receiver or other person taking possession in priority to any claim for principal or interest in respect of the debentures and shall be paid in the same order of priority as is prescribed by that section in respect of those debts and amounts.
(1A) In subsection (1), “floating charge” means a charge which, as created, was a floating charge.
(2) For the purposes of subsection (1), the references in section 328(1), (c), (d), (e), (f) and (g) to the commencement of the winding up shall be read as a reference to the date of the appointment of the receiver or of possession being taken as aforesaid, as the case requires.
(3) Any payments made under this section shall be recouped as far as may be out of the assets of the company available for payment of general creditors.
[UK, 1948, s. 94; Aust., 1961, s. 196]