Introduction

Fixed and floating charges – why are they important?

They give a lender a higher position in the queue for the net proceeds of a borrower’s assets in the event of a borrower’s insolvency.

A recent decision of Mr Justice Mann in VLM Holdings Limited v Ravensworth Digital Services Limited [2013] EWHC 228 (Ch) held it is possible that termination of a head licence on insolvency of the licensor does not necessarily mean a sub-licence becomes ineffective.

What was it all about?