ABSTRACT
Loan capital raises general issues – the ability of the company to borrow, the powers of the directors to borrow and the issue of marketable loans – and specific provisions relating to company charges. Questions on loan capital often involve a company which has gone into insolvent liquidation and requires the liquidator to be advised on the validity and priority of certain debts. In all questions of this type, two issues arise: how can the liquidator maximise the company’s assets (for example, sue the directors for wrongful trading, or have some charges set aside); and how should the liquidator determine priorities between competing creditors?
