Payment to buy off freezing order was security

Flightline Ltd v Edwards and another (Ch D TLR 23 August)

Swissair was subject to insolvency proceedings and, pursuant to s130(2) of the Insolvency Act 1960, Flightline could only obtain permission to continue its proceedings against Swissair if Flightline was a secured creditor. Flightline had obtained a freezing order against Swissair, which the parties subsequently agreed should be discharged on a payment in excess of £3 million into a bank account in the joint names of the solicitors. Such a payment could be treated as security for any judgment which the claimant subsequently obtained and therefore constituted Flightline as a secured creditor.