What is the ratio in Re Patrick & Lyon?

In company liquidation, preferential debts rank ahead of floating charge holders but after fixed charge holders in the order of priority for payment.

What did the court decide in Re Patrick & Lyon?

The court established the priority order: fixed charges, preferential debts, floating charges, then unsecured creditors.

Why is Re Patrick & Lyon important for insolvency?

It established fundamental creditor priority rules that remain largely applicable today and clarified the interaction between secured and preferential creditors.

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