Consider Corporate Insolvency Options

Hannah and Noah are thedirectorsof a company called Waikato Helicopters Ltd. - a properly incorporated company. In February 2019, Waikato Helicopters purchased two more helicopters to cope with the increasing corporate demand and the anticipated increase for Field Days Agricultural Event at Mystery Creek. Unfortunately, the developers of Field Days have to cancel the event, and as a result, there is no demand for the two new helicopters. This event's cancellation causesserious cash flow problems for the company, and they can't pay their employees or tax debt. Creditors have begun threatening legal action to repossess the two new helicopters.

Both Hannah and Noah firmly believe if the company is provided with some breathing space, it can turn around its financial woes.

Advise Hannah and Noah on the following: (ANSWER ALL PARTS)

1. Explain to the directors what is solvency (10 Marks)

Make sure to explain how it applies to Waikato Helicopters

2. With reference to corporate solvency - what options are available to Waikato Helicopters Ltd (15 Marks)

Make sure to include references to the Companies Act [1993]

Include the implications for Hannah and Noah

Make a recommendation.