question 1

Dark Limited had been experiencing severe financial difficulties since September 2019. Its directors, Dick and Harry, have now given up the struggle and have called a meeting on 22nd November 2019 to wind up the company.

Dark Limited has assets of HK$340,000.Its plant and machinery has an estimated value of HK$220,000.

The company's liabilities are:

1. HK$250,000 loan owed to Kowloon Bank secured by a fixed charge, created in March 2016 and duly registered, over plant and machinery;
2. HK$150,000 overdraft owed to NT Bank secured by a floating charge over the company's assets, created in August 2015 and duly registered;
3. HK$200,000 owing to employees; and
4. HK$210,000 owed to other trade creditors.

Liquidation costs are HK$50,000.

Required:

Advise the liquidator which creditors will be paid, the amount and the priority of payment