Background

Introduction

The value and operation of floating charges as securities for creditors in restructurings have been the subject of several Supreme Court rulings. However, the question remains as to the value that the receivable of a floating charge creditor must have in order to be considered a secured debt in a restructuring and therefore spared from the restructuring measures that apply to unsecured debts – in particular, the cut on debt capital.

Introduction

Under Finnish law, retention of title can be based on either a separate condition in a sales agreement or a specific agreement referred to in the Hire-Purchase Act.