Letter Confirming Floating Charge has not Crystallised

Letter Confirming Floating Charge Has Not Crystallised (Asset Sales)

CO.AS.17

This Letter Confirming Floating Charge has not Crystallised (Asset Sales) is referred to at clause 6.2.2 of the assets sale agreements. It is very customary for businesses to take out a loan which includes a floating charge which will attach to the assets of the business when it crystallises. The Buyer will want to be certain that the floating charge has not crystallised and that the holder of the floating charge has not taken steps to crystallise the floating charge. Otherwise the floating charge will become a fixed charge and attach to the assets and the Buyer will acquire the assets subject to the fixed charge.

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