Fixed and floating charge holders cannot participate in prescribed part for shortfall

These cases appear to leave open the question of whether any part of the debt due to the holders of a fixed and/or floating charge which does not form part of the secured obligations under that security, would be treated in the same way as a shortfall caused by an insufficiency of assets.

If the answer is "no", lenders facing an obvious shortfall might consider partitioning part of their debt and excluding it from the ambit of their security.

This might be an unattractive route however, as they would be seen to be competing with the ordinary unsecured creditors.