Please answer the questions with clear explanation. Thank you.

1. Invercargill Engineering Co Ltd (IEL) is an unsecured creditor of Otago Meat Processing Co Ltd (OMPL). IEL is owed $200,000 by OMPL, and this amount has been outstanding for one year. IEL has contacted OMPL on numerous occasions without satisfaction and has also discovered other suppliers of goods and services report that OMPL has not been paying its debts.

Required:

a) Explain to IEL why it cannot appoint a receiver of OMPL.

b) Explain to IEL the grounds upon which it can apply to the Court for a liquidator to be appointed for OMPL.

c) Assuming IEL is successful and the Court has appointed a liquidator, explain to IEL how a liquidator decides the order of priority for payment of the various claims or debts against OMPL and where its debt will fall in that order, referring to the relevant provisions of the Companies Act 1993 in your answer.

2. The law provides a variety of processes able to be applied to a situation in which a company is unable to pay its debts other than the appointment of a liquidator of the company.

Required: Referring to relevant sections of the Companies Act 1993 (and other legislation you think relevant), describe in general terms the different ways of responding to corporate insolvency other than liquidation and when those processes might be appropriate.

3. In general terms, describe the different ways in which insolvent companies can be administered under New Zealand law (other than internally by the board of directors of the company) and under what conditions.