Fly Me Ltd operates an airline business trading as Sturgeon Airlines. Due to government restrictions imposed after the outbreak of the S1G6 virus, airline travel comes to a grinding halt. The business of the company makes considerable losses and many staff are made redundant. The company is in serious financial trouble and it is unable to pay its debts when they fall due, but the directors see light at the end of the tunnel. It is expected that a vaccine for the virus will be made available within a year, after which air travel will resume. The company owes $3 million to creditors. This includes a $1 million loan from FundMe Bank which the company must repay. The loan from FundMe Bank is secured with a circulating security interest over the companys fleet of aircraft and this security is registered on the Personal Property Securities Register. The security agreement allows the bank to appoint a receiver on default of the loan. The directors envisage that the 4 company will likely default on this loan and that a number of creditors will commence legal action against the company to recover funds which the company owes to those creditors. The directors of Fly Me Ltd need your advice about external administration. Using your knowledge of Australian company law advise the directors of Fly Me Ltd:

(a) whether FundMe Bank can appoint a receiver to sell the companys fleet of aircraft if the company defaults on its loan with the bank [4 marks]

(b) which external administration process can help the company to trade out of its financial difficulties, and how this process can help the company to achieve this aim [6 marks]