(a)Winter Ltd is in the process of winding up and Don is appointed the liquidator. He...

 

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(a)Winter Ltd is in the process of winding up and Don is appointed the liquidator. He has established the following: The company acquired a property in Kowloon for $30 million and it is the subject of a charge to Kowloon Bank for $20 million. The current market price of the property is $16 million The company has other unencumbered non-current assets of $4 million The company has a bank balance of $1.04 million at Water Bank The company has not paid its tax bill of $200.000 The company still owes its suppliers $4 million Liquidator's fees of $200.000 is owed to Don The company owes its non-executive directors a total of $2 million directors' fees (i) (ii) (iii) (iv) (v) (vi) (vii) 3 (viii) The company owes each of its 40 employees wages of $66.000 and severance payment of $100,000 Required: Advise Don on how the assets of the company should be distributed. (please ignore the operation of the Protection of WVages Insolvency Ordinance) (16 marks) (a)Winter Ltd is in the process of winding up and Don is appointed the liquidator. He has established the following: The company acquired a property in Kowloon for $30 million and it is the subject of a charge to Kowloon Bank for $20 million. The current market price of the property is $16 million The company has other unencumbered non-current assets of $4 million The company has a bank balance of $1.04 million at Water Bank The company has not paid its tax bill of $200.000 The company still owes its suppliers $4 million Liquidator's fees of $200.000 is owed to Don The company owes its non-executive directors a total of $2 million directors' fees (i) (ii) (iii) (iv) (v) (vi) (vii) 3 (viii) The company owes each of its 40 employees wages of $66.000 and severance payment of $100,000 Required: Advise Don on how the assets of the company should be distributed. (please ignore the operation of the Protection of WVages Insolvency Ordinance) (16 marks)

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