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Lean Oranges Pty Ltd failed to repay its various loans, overdraft and corporate credit card debts totalling $5 million to CNZ Ltd ('CNZ), it was

Lean Oranges Pty Ltd failed to repay its various loans, overdraft and corporate credit card debts totalling $5 million to CNZ Ltd ('CNZ), it was placed into voluntary administration by Ben, and Michelle (a registered liquidator) was appointed as the administrator. Michelle's preliminary investigations have indicated that the administration of Lean Oranges is likely to be a long and complex process, and she seeks your legal advice on the following points: She has received letters demanding repayment from: a. the landlord of Lean Oranges premises for outstanding rents; b. the supplier of their inventory management systems for overdue payments; c. Lean Oranges energy company for overdue power bills.

These letters have been threatening the commencement of legal recovery proceedings if the debts are not repaid. Would Michelle be required to pay these debts; and would the creditors be able to commence their threatened legal proceedings during the period of Lean Oranges voluntary administration? Anne, who is one of the directors of Lean Oranges, has been offering Michelle advice on how to manage the business of marketing and selling Lean Oranges inventory systems. Should Michelle listen to Anne's advice?

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