My understanding is that debenture holders rank very high up the list of creditors in the event of a company failure. Higher even than HMRC. Is this correct, and where can I find a list of the 'pecking order' please, if one exists?

A debenture is a written acknowledgement of a debt by a company. Debentures are usually secured by a floating charge or a fixed and floating charge. In insolvency, the first creditors who receive payment are the secured creditors who have a fixed charge over a specific asset or assets of the company, e.g. a mortgage lender who has security against a property. Next on the list are preferential creditors, e.g. staff wages. Next to receive payment will be creditors who hold a floating charge. This occurs when a debt is secured against general rather than specific assets of the company. Next on the list are unsecured creditors, e.g. unpaid trade creditors, unpaid taxes (e.g. PAYE, VAT etc.). Before September 2003, HMRC were classed as a preferential creditor, but now they are classed as an unsecured creditor.