HC Deb 04 February 1975 vol 885 c500W
Mrs. Sally Oppenheim

asked the Secretary of State for Trade what is the order of priority for the payment of creditors involved in the collapse of the Nation Life Insurance Company.

Mr. Shore

The liquidator will apply the statutory provisions. Therefore, creditors secured by mortgages on specific assets will be paid in so far as the assets charged are sufficient to discharge their claims. After paying or providing for the costs and expenses of the winding up the assets will be applied firstly to pay the claims of the statutory preferential creditors to the extent provided for by statute, and then to the claims of the unsecured creditors who, subject to any direction of the court, rank equally between themselves.

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