Ciarden Express Limited (hereafter Garden Express), a private limited company by shares, is located in a small island, Amar, off the coast of India. Amar is a nature island where tourists visit year-round to explore its beautiful natural landseapes. The currency in Amar is the Amarian dollar (AMR). Garden Express is the main emplover in that country, employing 55% of the residents, and providing services to all business in landscape architecture and plant/material supplies. Its major business. which accounts for 90% of its income, is the provision of nature tours. In 2019, the only private airplane, which offered flight services wo the Amarian National Adrport (ANA), ended its service to that market, prompting the introduction of new player in the form of a ferry from Chennai, India to Amar. This resulted in a sharp decline in tourists on the island, and a significant decrease in the sales of Garden Express. At this point, the company's debts stood at AMR 476,000 with assets of AMRE3T3.000. In the middle of 2021, an announcement that the private airplane service would be retuming to ANA resulted in a heavy investment of AMRS 100,000 by Garden Express into its tour services. The return of the flight service did not materialise. (arden Express was formally notified of this on 31 December 2021. The company s accumulated debt, as at 1 January 2022, stood at AMRS976,000 with assets of AMRS275,000. A portion of this debt related to employee salaries, a golden handshake given to the recruitment of an intemationally acclaimed managing director and a loan from Rupert Mandeville of AMRS50.000, which was to be repaid by 30 March 2023, This loan has matured but has not yet been repaid. Rupert intended to use this money to pay for his sick child's healtheare at a premier health institation in India. When the Governor of Amar was asked to investigate the circumstances of this company, on 1 July 2023, in addition to the above, she found the following: 1. All employees had been paid for 30% of their salary for the period of February 2020 to present. This included three classes of employees: first, four directors have golden parachutes of AMRS1.5 million {combined). Of these directors, two are engaged in interlocking directorships and thus sit on boards of other local companies for which they receive an income. Second, only junior staff were also owed overtime, as the practice has been to pay the senior staff overtime to the exclusion of this class of employees. One of these junior emplovees, Maka developed a spinal work-related injury in late 2019 and she has been depended on her salary to pay for the treatment, as the company claims that it does not have sufficient money to refund her bills at this point. Maka could seek recourse through the state's MNational Insurance fund, but this procedure could take up to 9 months to complete the refunds. There is also some confusion about whether this is possible given the outstanding employee and employer contributions owed by Garden Express to the National Insurance Scheme. The final class of employees, senior staff. had paid into a workplace pension and the deficit is AMRS65,000. 2. In March 2016, Money International Limited, a larger international bank, loaned the company AMRSE30,000. The debt was secured by a charge on the company s manure production equipment. In addition to the power to write off losses when it (Money International Limited) files its tax returns, any other losses on their loans are covered by a special insurance policy. When the financial sector's confidence rose due to the expected return of the flight service, Money Bank International loaned Garden Express AMRS20,000 on 15 December 2021 to invest in a new fleet of vehicles. The bank received notice on 24 December 2021 (before Garden Express) that the flight service would not be returning. On 27 December 2021, it approached the company and received a charge over the vehicles and a valuable rrademark for its last loan disbursement of AMRS20,000. 3. The Government is intending to bail out Garden Express given its prominence as an employer in the country but there is public outery regarding the use of public funds to bail out this company, which has often refused to contribute to charitable causes. It has also openly refused o join the Wildlife Engagement Society and its employees claim that it does not practice good corporate social behaviour. The Government is owed AMRE100,000 in taxes as well but is willing to waive this debt and contribute towards the pension defieit. It has also informed the public that should it proceed with this bailout, it will not be able to invest in the much-needed development of new educational facilities in the north and south of the island, but the trade-off will be that 45% of the population may remain employed. The Government was asked to provide assurances that the bailout will ensure continued employment, but it has indicated that given the turbulent financial affairs of Garden Express, it is unable to provide any assurances at this time. 4. Since its inception, Garden Express has relied on Starters Limited, a company specialising in the production of seedlings. Starters Limited employs 25% of the population in Amar. Garden Express' business accounts for 85% of the orders processed by Starters Limited. If Garden Express were to collapse, Starters Limited has informed the Government, during its recent impact assessment study, that it would also become insolvent and 95% of its staff would be made redundant. Thus, Starters Limited has made a strong case for government intervention. 5. Though Garden Express owns greenhouses on its present premises, it leases a large warehouse about five miles from the head office where it stores its flowering plants before sale. These plants are the highly valued as customers prefer to purchase them at this stage in the growth process. It is likely that Garden Express will be unable to pay its rent in three months and the landlord has threatened that if he is not paid, he will prevent aceess to the warchouse. The company, however, needs access to the warehouse to ensure that it can continue to sell the plants, which often have a lifespan of & weeks before they require re-planting. If the Governor does not act quickly, 40% of Garden Express\" stock may be lost Assume that there is no existing insolvency or other statutory framework in Amar to assist in the resolution of these claims. Instead, the Governor of Amar will herself decide how to deal with the competing interests of the different parties outlined above. She will prepare a report to present to Parliament. To this end, she asks that you write a report to form the basis for her proposed action. Below are the three main areas of focus for Parliament. First, the Govermnor has heard that the United Kingdom offers an excellent approach to rescuing companies by virtue of administration. She requests that you advise her on how these four elements of administration under UK law map on to the aim, policies, objectives and visions of insolvency law: {i) Moratorium outside of insolvency processes under the Corporate Insolvency and Crovernance Act 2020 (i) Order of priorities for the administrator {iii)Role and power of the administrator {iv) The operation of pre-packaged administrations You should understand how each of these work under existing insolvency law. As these provisions will have to be tested in a court of law, she is happy for you to discuss United Kingdom jurisprudence (including case law) to assist in your explanation of the above. Second, the Governor has been informed by her counsel that it is likely that if the company is not successfully rescued by virtue of administration, that she will have to place an alternate procedure in place. Having spoken to the company and its creditors, she understands that it does not intend o wind itself up. Thus, it appears that the court will have to take action in winding up the company. She has also heard that the United Kingdom provides a robust method of division as assets by virue of a procedure, called liquidation. She has also requested that you advise her on how these three key elements of liquidation map on to the aim, policies, objectives and visions of insolvency law: {i) Exclusion of charged assets from the pool of assets, including protecting pre- insolvency entitlements. {ii) The identification and treatment of specific creditors as preferential (i) Application of pari passu in the distribution of assets Due to a range of actions of partics stated below, she has been informed by one of the Covernment's junior advisers that she should consider whether the pot should be larger due to unjustified transactions in the run-up to insolvency. Based on the facts below, she has been given a list of transactions that should be further explored. She seeks your advice using English law to determine the validity of these elaims. The company was insolvent when these transactions were made. These transactions would have occurred within 12 months of the company s insolvency proceedings. She is not sure whether any assets will be produced from this investigation but is secking to determine the validity of these claims. She has also provided you with the relevant statutory provisions which will assist the resolution of these issues: - Money International's extortionate interest rate { Insolvency Act 1986, section 244) and late floating charge {Insolvency Act 1986, section 245) to secure AMRS20,000 - Early payment of golden parachutes to directors (Insolvency Act 1986, section 239) and directors\" duties based on a change in the terms of the golden handshake {Companies Act 2006, sections 170 177) - Maka's purchase of the land as a transaction at an undervalue (Insolvency Act 1986, section 238) - The transfer of all the stock in the warchouse to the landlord as a preference (Insolvency Act 1986, section 239) She also wishes to know whether there are any justified reasons why a liguidator would not proceed with a claim, even if it were found to have merit. She requests that these considerations also be balanced in light of the aim, policies, objectives and visions of insolvency law. At every point, your answer should be balanced (in the sense of giving sufficient credit to the value of a range of competing objectives, policies and visions when balancing interests in insolveney). Case law from the United Kingdom may also be useful in assisting her in understanding the relevant interpretation in a court of law. You should be able to use the aim, objectives, policies and philosophies of insolvency law o justify the trade-offs and choices for the Governor. Word Limit: 3000 words {excluding footnotes and appendices, bibliography, contents, tables of cases and title pages) Submission deadline: Monday 13 May 2024 12.00 (midday) UK time Essay formarnting: minimum 11 point legible font {eg Arial or Times New Roman), with minimum 1.5 line spacing and 1 inch margins. Place your anonymous code and word count in the header of YOur cssay