In order to determine whether a charge is fixed or floating it is necessary to conduct a two-stage enquiry .... At the first stage of the process the court must construe the relevant instrument of charge in order to ascertain the nature of the rights and obligations which the parties intended to grant each other in respect of the charged assets. At the second stage, after these rights and obligations have been ascertained, the court must embark on the second stage of the process, which is one of categorisation ....” Re Avanti Communications Ltd [2023] EWHC 940 (Ch) at [26-27] per Edwin Johnson J Considering the above statement, critically analyse the difference between a fixed and a floating charge and explain the importance of the distinction

In order to determine whether a charge is fixed or floating it is necessary to conduct a two-stage enquiry .... At the first stage of the process the court must construe the relevant instrument of charge in order to ascertain the nature of the rights and obligations which the parties intended to grant each other in respect of the charged assets. At the second stage, after these rights and obligations have been ascertained, the court must embark on the second stage of the process, which is one of categorisation ....” Re Avanti Communications Ltd [2023] EWHC 940 (Ch) at [26-27] per Edwin Johnson J Considering the above statement, critically analyse the difference between a fixed and a floating charge and explain the importance of the distinction