The directors were asked to confirm that no events had led to the crystallisation of any floating charges.
(a floating charge is a security interest that hovers above the debtor's assets until some event causes the charge to become fixed or crystallized on those assets)Investopedia Says:
An example of this occurs when an investor needs to take a capital loss for a particular stock, but still believes the stock will rise. Thus, he/she would crystallize the paper loss by selling the stock and buying it back right away.
Most tax agencies have regulations (such as the wash-sale rule) to prevent taking a capital loss in this fashion.
Read more: http://www.answers.com/topic/crystallization#ixzz1BPDeLgpA