Anxious to maintain sufficient reserves of the AXION company, Mr. DUPONT called on his distributors to repay
Question:
Anxious to maintain sufficient reserves of the AXION company, Mr. DUPONT called on his distributors to repay the lines of credit that he had granted them. PRO SPORT PLUS (“ PSP ”), a general partnership (SNC), was one of these companies owing several thousand euros on its line of credit which had reached maturity.
Unfortunately, SNC PSP was unable to reimburse the entire amount owed. PSP is a company that has seven trading partners. Mr. DUPONT calls on your consulting services to find a way to have this debt repaid.
As PSP cannot release the liquidity necessary to repay its debt, what recourse will AXION SPORT have? Can it enforce the debt against the personal assets of PSP partners?
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma