Section B - Scenario 5
AeroLogistics Ltd is a freight service firm. They have a loan from BankCorp secured by a floating charge over all the company's assets. AeroLogistics misses three consecutive loan repayments. BankCorp issues a formal demand for payment, which is ignored. BankCorp then formally notifies AeroLogistics that they are enforcing their security.
What is the legal effect of BankCorp enforcing the security on the floating charge?
ACCA · Question 59 · Insolvency law
Section B - Scenario 5
AeroLogistics Ltd is a freight service firm. Following the crystallization of the charge, BankCorp decides to appoint an Administrator to try and rescue the company. BankCorp holds a 'Qualifying Floating Charge' (QFC).
How can BankCorp appoint an Administrator?
Answer options:
They must petition the court and wait for a judge to make an Administration Order.
By filing a notice of appointment at court, without needing a formal court hearing.
They must get the approval of the majority of the unsecured creditors.
They cannot appoint an administrator; only the directors can do this.
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