Companies Act 2014 section 558ZAB

Priority

Section 558ZAB establishes the priority ranking of the process adviser's remuneration, costs and expenses, and of certain liabilities incurred by the company during the rescue process, ensuring these are paid ahead of other claims.

• The process adviser's confirmed remuneration, costs and expenses rank highest of all and must be paid in full before any other claim, whether secured or unsecured, under a rescue plan, receivership or winding up.
• Liabilities incurred by the company that are treated as expenses of the process adviser must also be paid in full and rank ahead of unsecured claims and claims secured by floating charges, but they rank behind claims secured by fixed charges, mortgages, liens or pledges.
• The priority given to these amounts extends even over the costs, charges and expenses of a winding up itself, including any liquidator's remuneration.
• There are therefore two tiers of priority: the process adviser's own confirmed fees sit at the very top, while company liabilities attributed to the process adviser sit below fixed-security holders but above all other claims.