'An order has been issued stopping Secured Creditor
I and M Bank from dealing, trespassing or selling the suit property pending the hearing and determination of this application,' ordered deputy registrar commercial division courts
More broadly, both situations grapple with the same vexing problems: how to compensate a secured creditor
when the debtor's financial distress and bankruptcy frustrate commercial expectations and whether and to what extent market-based input can be relied on to determine the appropriate compensation.
In the event no secured creditor
has possession of the collateral, and the FHLBank has not filed its financing statement first, the CEBA lien, as provided since its enactment, would not grant the FHLBank priority over the earlier "actual security interest" perfected under the UCC.
HSBC - a secured creditor
- will suffer a shortfall in excess of PS1.1m
will be able to enforce their security, subject to court approval, notwithstanding a moratorium while the PCP or rescue within bankruptcy process is ongoing.
Will it not violate a secured creditor
's statutory right to foreclose the mortgage in its favor?
It is an established principle that a RM owes a duty of care to the appointer and their primary task is to realise the assets of the company for the benefit of the secured creditor
Licensed trustees and receivers may be court appointed or privately by the secured creditor
. The receiver takes control of the property, oversees the liquidation and distributes the proceeds according to the priorities established by law.
"The plan which was drawn by Riffa Views, in coordination with NBB and other stakeholders, provides for partial repayment to creditors over the coming period, and reflects the active participation by NBB, as the sole secured creditor
, and the self funding contributed by contractors in charge of completion of a total of 212 villas at the Parks District, namely Poulliades Construction Company (61 villas), Projects Construction Company (78 villas) and Cyprus Cybarco Tabet JV (73 villas), under the supervision of consulting engineers Adel Ahmadi Associates," he added.
III The Secured Creditor
's Right to Equitable Subrogation
Gunvor Group, which holds almost 30% of the shares in the company and is therefore considered a closely related party for the purposes of the Nasdaq OMX disclosure rules, has now also appointed financial and legal advisers to assist it in the refinancing discussions in its role as senior secured creditor
Where the pledged assets are sold, the amount payable in respect of salaries and wages would be realised on a proportionate basis from the pledged asset of every secured creditor
. These rules will ensure that the interest of employees is put on a higher footing than that of secured creditors
who can be paid only after the two years' outstanding wages are paid to the employees.