Question
SAFPL has a longstanding commitment to doing business in its local community. As a result of booming sales in the United States the company has
SAFPL has a longstanding commitment to doing business in its local community. As a result of booming sales in the United States the company has some cash available for short term investment. Rather than depositing it in the bank, SAFPL subscribesfor unlisted unrated debentures issued by a local company called Bangzia Ltd. Bangzia has a number of shopfront "branches" in local towns that look bit like bank branches; however , bangzia is not an authorised deposit taking institution regulated by the australian prudential regulation authority (APRA). Bangzia uses the money subscribed by investor to make high risk loans to property developers. Shortly after SAFPL make its investment, Bangzia is placed into external administration. What rights if any does SAFPL have a debenture holder?
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