A liquidator's assurance that the equitable lien for care, preservation and realisation of assets will be exercised to meet any adverse costs order, combined with the availability of substantial unencumbered funds, may be sufficient to defeat an application for security for costs against a company in liquidation. The availability of the lien's priority over secured creditors provides additional comfort beyond the statutory priority under s 556(1) of the Corporations Act 2001 over unsecured creditors alone.
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