Here is a little bit of trivia, but interesting nevertheless, I think.
From Swoop.
R&D tax credit loan - Swoop AU (swoopfunding.com)
"An R&D tax credit loan is a newer type of loan that uses your future R&D tax credit payments as security. You first need to qualify for an R&D tax credit and you have to spend the money on research and development."
All good. From Clayton Utz
Whizz… Bang! Employee creditors have priority to R&D tax refunds, and the “true employer” line of authorities upheld - Knowledge - Clayton Utz"The Court (Justice Black) found that the R&D Refunds satisfied the definition of
"circulating asset" in section 340(5)(a) of the PPSA and therefore were an asset subject to a circulating security interest available for distribution in priority to priority employee creditors in accordance with section 561 of the Corporations Act."
Receivership: A guide for creditors | ASIC
"Once the receiver sells the assets, the money collected is distributed as follows:
- money from the sale of non-circulating assets is paid to the secured creditor after the costs and fees of the receiver in collecting this money have been paid
- money from the sale of circulating assets is paid out in the following order:
- the receiver’s costs and fees in collecting this money
- certain priority claims, including employee entitlements (if the liability for these has not been transferred to a new owner)
- repayment of the secured creditor’s debt.
In both cases, any funds left over are paid to the company or its external administrator, if one has been appointed.
Each category must be paid in full before the next category is paid. If there are insufficient funds to pay a category in full, the available funds are paid on a pro-rata basis (and the next category or categories will be paid nothing)."
So, IMO, R&D Refunds satisfy the definition of
"circulating asset" in section 340(5)(a) of the PPSA, therefore the Lender will have to go into the mix with other secured creditors after the priority creditors have been satisfied. On a pro-rata basis of course. Hope there is enough to go around. Unfortunately, shareholders will probably miss out.
(20min delay)