A new ruling issued by the House of Lords last week places holders of floating charges in a senior position over insolvency-related expenses, including liquidators' costs. The ruling distinguishes between floating charges - where a particular class of changing assets acts as security in a loan - and fixed charge assets that are tied to a specific asset.

Though the ruling bodes well for U.K. whole business securitizations, adding more certainty to structural assumptions, it comes as no surprise to most of the market. The industry had been expecting the move following the changes outlined in last year's Enterprise Act.

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