Lucian Pty Ltd (Lucian) is a company hosting expensive scenic crises around Europe. Ernest Jones-Armstrong and his
Question:
Lucian Pty Ltd (Lucian) is a company hosting expensive scenic crüises around Europe. Ernest Jones-Armstrong and his wife, Isla are its directors. A few months ago Lucian borrowed $1.7 million from the ABC Bank. The security for that loan was a mortgage over the company's most valuable asset, a mansion in inner-Melbourne worth $2.5 million. Under that loan agreement, ABC Bank has the right to take possession of the building and sell it if Lucian stops paying the loan repayments.
Lucian also has other secured creditors and numerous unsecured creditors.
За) If the ABC Bank placed Lucian into a Receivership could the receiver sell the mansion for any price which a potential buyer offered?
3b) If the directors of Lucian placed the company into a Voluntary Administration before the ABC Bank had a chance to place the company into a Receivership, what effect would this have on the unsecured creditors, the ABC Bank and the other secured creditors? Explain.
Expert Answer:
Introduction Lucian Pty Ltd is a company specializing in scenic cruises around Europe Recently it borrowed 17 million from ABC Bank securing the loan ... View the full answer
