Question
In the fourth quarter of the year 2017, the bank officer detected few warning signals during the credit review. The CEO of the company is
In the fourth quarter of the year 2017, the bank officer detected few warning signals during the credit review. The CEO of the company is uncontactable. At the same time, the company has submitted three (3) requests to change the financing terms. As of November 2017, the company failed to submit its audited accounts for financial year ended 31 December 2016 despite several reminders sent by the bank to the company. As at 31 November 2017, the company has not paid monthly instalment for the factory and machineries for four (4) months. The site visit was conducted and it was found that the factory was not in operation. Based on the conversation with the workers of the next door factory, the factory has been closed for almost one month.
Based on the above: -
Suggest how the bank can get the fastest recovery from all the collateral taken to secure the financing in question (f) above.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started