Re MC Bacon Ltd (No 2)
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Re MC Bacon Ltd [1991] Ch 127 is a UK insolvency law case relating specifically to the recovery the legal costs of the liquidator in relation to an application to set aside a floating charge as an unfair preference.[1]
Re MC Bacon Ltd (No 2) | |
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Court | High Court |
Full case name | In re MC Bacon Ltd |
Decided | 5 April 1990 |
Citation(s) | [1991] Ch 127 [1990] BCLC 324 |
Case opinions | |
Millett J | |
Keywords | |
The court held that because the right of action was vested in the liquidator (rather than the company itself) then those claims were not claims for realising or getting in the assets of the company, and therefore were not expenses of the liquidation. Accordingly, they were not recoverable under the preferential regime reserved for expenses of the liquidation.
The court also gave useful guidance in the discussion of the proper application and context of applications by liquidators in relation to preferences and claims relating to wrongful trading.