Bank & Secured Creditor Debt

Corporate Rescue has extensive experience and expertise in negotiation and dispute resolution with Banks, Financiers, Mortgage Insurers and other Secured Creditors.

In the case you are receiving pressure or demands from one or all of these parties, our team can facilitate and assist in offering a solution to suit individual company circumstances and the appropriate strategy to minimise risk and maximise results.

Should the negotiation not be accepted and a formal appointment is required, our team can assist in working with the secured creditor to attempt to have a mutually agreed receiver/administrator/ professional formally appointed.

Turnaround of a company requires a complete assessment and review by a turnaround professional and the implementation of strategic changes to the operation and financial structure of the company subject to the secured creditor’s approval.

Corporate Rescue works closely with turnaround professionals with a proven track record.

We will assist in the appointment and initial brief to the turnaround specialist and liaise with the secured creditor to assist in your specific circumstance.

A company most commonly goes into receivership when a receiver is appointed by a secured creditor who holds security over some or all of the company’s assets. The receiver’s primary role is to collect and sell sufficient of the company’s charged assets to repay the debt owed to the secured creditor. The receiver’s role is to:

• collect and sell enough of the charged assets to repay the debt owed to the secured creditor (this may include selling assets or the company’s business)
• It allows an independent party to review the company’s affairs and deal with the pressures of creditors
• pay out the money collected in the order required by law, and
• report to ASIC any possible offences or other irregular matters they come across.

The receiver’s primary duty is to the company’s secured creditor. The main duty owed to unsecured creditors is an obligation to take reasonable care to sell charged property for not less than its market value or, if there is no market value, the best price reasonably obtainable. A receiver also has the same general duties as a company director.

The receiver has no obligation to report to unsecured creditors about the receivership, either by calling a meeting or in writing. However, the receiver will usually write to all of the company’s suppliers to inform them of their appointment. Unsecured creditors are not entitled to see the receiver’s reports to the secured creditor.

A voluntary administration provides a flexible procedure, enabling a company time to compromise an arrangement with its creditors, which may save the company, the business and jobs while maximising the return to creditors.

Voluntary administration is an insolvency procedure where the secured creditor of a financially troubled company, with a majority security interest over most of the company’s assets appoint an external administrator. A voluntary administration:

• Provides a company with breathing space to deal with creditors in an orderly manner and prepare a proposal (Deed of Company Arrangement) to give the best return to stakeholders
• It allows an independent party to review the company’s affairs and deal with the pressures of creditors
• Reduce the possibility of secured creditor proceedings against the assets of the company
• It may allow the company to stay out of liquidation

If the voluntary administration attempt fails, the legislation facilitates the winding-up of the company.