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Clifford Chance

Clifford Chance


RE Avanti Communications Limited (In Administration) – Characterisation of Security as Fixed/Floating

May 29, 2023

The recent English case of Re Avanti Communications Limited (in administration) is a helpful first instance case for secured lending and will also be welcomed by borrowers and lenders in Hong Kong.

It consolidates the English law on the characterisation of security as fixed/floating and clarifies that the existence of disposal permissions in respect of a secured asset will not automatically undermine fixed security over it. The judgment provides a useful consolidation of the applicable English law principles (on what are often complex issues) for Hong Kong market participants. In this briefing note, we consider the key points from the case and what it means for security going forward.

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