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RECOMMENDATIONS
FAVOURING ADMINISTRATION
The purposes
of the application are the following:
A. The
survival of the whole or part of a company as a going concern.
B. A more advantageous realisation
of assets than would be effected in the case of a winding up.
An Administration
Order will provide a moratorium against creditor's claims under
section 11 of the act. The moratorium will act to protect the company
against the competing interests of the creditors.
It is anticipated that there will be sufficient cash inflow from
the outstanding loan book to enable the companies to continue trading
in the short term. This will have the effect of preserving the company's
business and assets and in particular any element of goodwill which
may be preserved by the survival of the company.
The initial review for the purpose of this report of the companies
various classes of assets has enabled the proposed joint administrators
to outline the initial strategy for the protection and realisation
of the assets.
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