Section 119: Application of proceeds of office-holder claims
715.This section amends the Insolvency Act 1986 to clarify the order of priority for the distribution of proceeds arising from an office-holder claim or from the assignment (or assignation in Scotland) of such a claim (see section 118). New section 176ZB codifies the legal position established by case law by providing that the proceeds of these types of claim do not form part of the company’s property which is available for the satisfaction of debts owed to a creditor with floating charge security.