Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MLM Sdn Bhd is a game developer company. The company managed to develop highly rated games in mobile phone, which has been sold globally. In

image text in transcribedimage text in transcribed MLM Sdn Bhd is a game developer company. The company managed to develop highly rated games in mobile phone, which has been sold globally. In March 2012, the company obtained a loan from MJT Bank for which the company created a charge over its property located at Kok Lanas, Kelantan. However, the charge was not registered. In May 2013, the company entered into a loan agreement with Tijarah Finance, secured by its book debts. Both parties agreed that the company can pay the proceeds of the charged book debts into its own account and could use them in the normal course of business. The charge was duly registered. Subsequently in January 2014, the company created a charge over its stock-in-trade and undertaking in favour of GGWP Finance. The loan agreement contains a clause preventing the company from creating subsequent charges without the consent of the bank. The charge was duly registered. In June 2015, the company charged its building to secure a loan with Bank Dagang. The charge was duly registered. Due to some financial constraints the company was unable to pay the employees' salaries for December 2014. Two of their directors agreed to give loan to the company for that purpose. In October 2017, the company went into liquidation. The liquidator discovered that there was a legal action for outstanding payment against the MLM Sdn Bhd by one of its suppliers, Techies Enterprise. Techies Enterprise managed to obtained judgment debt from the court on August 2016. Advise the liquidator regarding the priority of the above creditors

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

Financial Accounting Information for Decisions

Authors: John J. Wild

8th edition

125953300X, 978-1259533006

More Books

Students also viewed these Accounting questions

Question

What are the pros and cons of credit? Critical T hinking

Answered: 1 week ago