Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Law For Health Informatics And Information Management

Authors: Melanie Brodnik, LaurieRinehart-Thompson, Rebecca Reynolds

3rd Edition

9781584265306

More Books

Students also viewed these Law questions