At the time of liquidation priority should be given to secured creditors. Creditors may be secured to an asset partially or fully. After paying off secured creditors assets can be used to pay off unsecured creditors and other liabilities.
-Firstly all assets are secured against the loan of First Bank
-Inventory and equipments are secured against the loan from LeatherCo
-The new equipment is secured against the amount due to EquipCo
Primarily First Bank have priority over all assets as it have security interest in all assets. First Bank can claim an amount upto 20,00,000 plus interest amount.
Inventory and equipment are specifically secured to the loan from LeatherCo for an amount of 2,00,000. The balance in realisation of inventory and equipment after paying off the primary creditor First Bank can be claimed by LeatherCo.
After paying off First Bank and LeatherCo the balance amount in realisation of equipment can be paid to EquipCo.
use irac method to solve this please ACME Corporation makes shoes. On January 15, 2010, ACME...
use the irac method to solve this question.
ACME Corporation makes shoes. On January 15, 2010, ACME borrows $2,000,000 from First Bank, securing the loan by signing a security agreement giving First Bank a security interest in all of its assets, presently owned and future acquired. On January 18, 2010, First Bank files a financing statement listing all equipment, intellectual property and inventory as collateral On July 10, 2010, ACME borrows $200,000 from LeatherCo, its supplier of leather, securing the...
Please use own words. Thank you.
CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions listed below in specific detail. A minimum of 4 pages is required; ensure that you answer all questions completely Case Questions Who are the main players (name and position)? What business (es) and industry or industries is the company in? What are the issues and problems facing the company? (Sort them by importance and urgency.) What are the characteristics of the environment in which...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...