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Offices |
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| Vancouver Victoria (Non-Resident Trustee) Prince George (Non-Resident Trustee) | ||
| Non-Resident Offices | ||
| Burnaby Nanaimo | ||
| Associate Offices | ||
| Calgary Edmonton Toronto | ||
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Offices |
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| Vancouver Victoria (Non-Resident Trustee) Prince George (Non-Resident Trustee) | ||
| Non-Resident Offices | ||
| Burnaby Nanaimo | ||
| Associate Offices | ||
| Calgary Edmonton Toronto | ||
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Business
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Abakhan
& Associates Inc.
Creditor Services Agent An
appointment from a lender pursuant to a security instrument such as a
General Security Agreement, usually providing specific powers to
liquidate assets of the borrower covered by the security.
There are no powers to manage the business. Receiver Like
an agency appointment, a receiver is appointed by a lender pursuant to
a security agreement to liquidate assets of the borrower covered by
the security. Additional
powers may be conferred upon the receiver, but like an agent, there
are no powers to manage the business. Receiver
- Manager A
receiver-manager is like an agent and/or a receiver with the
additional powers of being able to operate the business.
The appointment is pursuant to a security instrument which is
sometimes blessed by the courts. Monitor A lender will on
occasion appoint AAI as a monitor to provide independent information
on a borrower’s operation, on a regular basis, for a specific period
of time. The monitorship
is an agreement between a lender and a borrower that sometimes evolves
from a viability assessment mandated by the lender. The appointment is generally not pursuant to terms of a
security agreement. Trustee The
appointment of a trustee is the first and vital step in initiating the
principle of creditor control. The
trustee takes possession of the assets of the bankrupt debtor and of
all the books and documents relating to his affairs. He becomes in effect a temporary manager of the business,
subject to the supervision of the inspectors appointed by the
creditors. He may carry
on the business, or alternatively, sell the assets.
He
can do such things as employ a lawyer, borrow further money for the
business by pledging or mortgaging its remaining free (unsecured)
assets and negotiate with creditors for the acceptance by them of
specific assets in lieu of money settlement of their claims. He may even engage the bankrupt debtor himself to assist in
the administration of the bankrupt estate.
To do these things, however, he must have specific authority
from the inspectors. A
trustee has the power and duty to recover property that under
bankruptcy law should form part of the debtor’s estate and thus be
available to satisfy the claims of creditors. |
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Copyright © 2003 Abakhan & Associates Inc. All rights reserved. |
