Sanscash Ltd has recently been experiencing an unusual business downturn. Business in the last month has not been generating enough revenue for pay for some of Sancash Ltd’s liabilities. The company is not sure that it can continue solvent trading. This is the first time that this has happened in the company’s 10-year history. The company hopes to win some big contracts that will provide it with vital cashflow. The creditors of Sanscash Ltd are worried because the company has not been making regular payments on their liabilities. One of the creditors, NewSouth Bank, has a loan contract with Sanscash Ltd, which is secured by way of a first registered mortgage on the factory and land owned by Sanscash Ltd. NewSouth Bank is very concerned about preserving their security immediately. Supplyco is another creditor of Sanscash Ltd who is owed $30,000 for unpaid goods that have been supplied to Sanscash Ltd. They are concerned about obtaining at least some of their money back. Sanscash Ltd also has over 100 employees who are owed at least $10,000 each in worker’s entitlements and are concerned that they will not get paid if the company becomes insolvent.
With reference to relevant sections of the Corporations Act 2001 (Cth), advise each of the following parties which form of external administration would be most appropriate to satisfy their needs: a) NewSouth Bank; b) Supplyco; and c) the employees of Sanscash Ltd
Can u explain what legal issues can be identified from the case