Floating Charges Over Book Debts

Abstract

This article reviews the important recent House of Lords decision in Re Spectrum Plus in which the distinction between fixed and floating charges over book debts was considered. The article considers the practical consequences of the decision, and highlights a number of issues in relation to which further guidance from the courts would be desirable. This decision is also of wider interest in that it adds to the general trend whereby the courts have contemplated prospective overruling, although ultimately the decision was not limited in that manner.