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Who gets paid when a company goes bust: creditors’ rights explained

Posted: 15 Sep, 2016

Keith Steven of KSA Group gives an extensive list of warning signs that a business is distressed, heading for insolvency and so in need of a turnaround solution.

When dealing with creditors in insolvency situations, it is vital to remember the order of priority. Who ranks above whom? Where does the bank and HMRC rank? If the bank has security, do employees rank ahead of them? These are all common questions we get asked.

The simplest way to answer these questions is to imagine creditor ranking as a ladder. Further down the page, we have a written explanation but if you prefer a pictorial format, we have produced an infographic that shows the situation.

http://www.companyrescue.co.uk/directors-guides-insolvency/creditors-priority


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