lend $100 000 to the company as an unsecured loan, but at double the market interest rate (Marg has spare funds as she made a bit of money from her online knitting tutorials). Geoff uses this to pay off Arrow Systems their full debt, because Arrow sent a very muscular collector round to press for payment, and anyway he needs to keep them happy as a key supplier if the company is going to continue trading in future. In May 2021, Geoff comes across an email from Chris to Marg which says "Cuz, this business was insolvent back in mid-2020, and now has liabilities of $600 000, but I reckon if you lend this money, it might help it stumble on a bit longer, and the intellectual property could be valuable to sell or license if Geoff can find a buyer for it". Geoff realises it's time to call in some other help, so comes to you as an insolvency lawyer, for your advice on: (1) What would happen to the different creditors if the company went into liquidation, and on any proceedings the liquidator might be able to bring? (2) Whether, as an alternative to liquidation, the directors could use some other procedure under Part 5 of the Corporations Act, and what the bank's rights might be in that situation