Employee Loan

Employee Loan

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If an employee lends the company £50,000 and is secured against future and current debtors what is the situation should the company go into liquidation/administration?

Would the Liquidator/administrator accept the charge and pay the £50,000 or would they ranked equally with other creditors? There are no floating or fixed charges nor bank loans or Mortgage charges.

The employee is the husband of one of the shareholders and director.

Thanks
Trevor Payne

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