Receivership costs and expenses prioritised over preferential creditors’ claims

Court of Appeal upholds the High Court's decision that receivers were entitled to repay a loan to the bank, which was deemed a cost of the receivership, in priority to the claims of preferential creditors, finding that the repayment did not breach statutory priorities, as the loan was considered an expense of the receivership and thus had precedence; but the Court also clarifies that a receiver has a duty to preferential creditors to either pay or ring-fence assets for their claims, and trading with those funds without doing so could result in personal liability for the receiver.