Dealings with accounts, or book debts
or receivables as they are known by some market participants, are important financing tools for firms and companies, whether the dealings are by way of the factoring of debts, securitisation of mortgaged debts, or the trading in the distressed debt of entities in financial difficulties.
As the eighteenth century dawned, book debt
embodied the credit that ran the local economy in Connecticut.
She said: "In the past, a director of a company with few fixed assets, such as property or plant, would be readily prepared to give security over its book debts
in order to get funding, and this was commonly provided in the form of a debenture.
There was a debenture over the company's assets which purported to create a fixed charge on the book debts
outstanding on the receivers' appointment.
"Until now it has been accepted practice that banks have been able to take a fixed charge over companies' book debts
on condition that the proceeds of those debts are paid into a designated bank account.
Big Bear is paying a consideration of 7m [pounds sterling] which, together with the value of book debts
of 2.4m [pounds sterling], gives a total transaction value of 9.4m [pounds sterling].
It operated successfully because the legal maximum interest rate of 5 percent (before the Usury Laws were repealed in the 1830s) could be exceeded by an internal credit transaction (confined to the book debts
of the firm) with a graduated price structure; the length of this internal credit was, if necessary, extended by payments made in bills of exchange.
The company is set to be liquidated after an administrator's report showed it collapsed with book debts
of PS3.8 million, with unsecured creditors expected to see a significant shortfall.
He said: "With the ever increasing levels of book debts
that companies are carrying, there is more pressure than ever to recover debts before they become 'bad debts
The deal included the domain name, goodwill and leasehold property but not the book debts
, investment in CPP Milan, Zagato licence or any assets relating to Spyker.
Under the leadership of David Birks, BHP Law acted for KPMG as administrators in relation to the collection of book debts