A debenture consists of a debt owed by the Company to another secured by a deed which prescribes the condition of the realization of the debt. A debenture may be created over the fixed or floating assets of the Company. When it is created over the floating assets, the company is entitled to continue to use the assets in the ordinary course of its business, until the conditions prescribed for its realization occurs. When it thus occurs and the debenture holder, usually the creditor, enforces his security by the appointment of a Receiver or Receiver/Manager under his powers in the Debenture deed, the assets formerly available to the Company ceases to be so, and now becomes fixed, and is crystallised, and remains under the general control of “the Receiver/Manager”.
– Karibi-whyte, JSC. Intercontractors v. National Provident (1988)