Tutorial Question - Corporate Finance AUS: I'm unsure of this question.. David, Helen, and Lisa are the directors and ordinary shareholders of the company. David owns 90% of the company, Helen 5%, and Lisa 5%.

Lisa has been appointed as a director to represent the interest of her family, who currently hold $300 000 worth of preference shares in the company. Her family holds their shares through a company (called Tiger Lily Investments Pty Ltd) as trustee for the Tiger Lily Family Trust.

A meeting of the directors discusses the creditors that Racing Parts Pty Ltd now has.

Identify and explain to the board of Racing Parts the type of creditors the company has.

Explain which creditors are in a stronger position vis--vis each other in the event that Racing Parts cannot repay all of its debts. Please use the Corporations Act 2001, Case Law, or relevant law (Australia) if required. Thank you