Q2. A liquidator was appointed after Rock
Bottom Pty Ltd was declared insolvent on 1 July 2018. The company’s
assets realised $14,250,000. This came from the sale of the secured
land and buildings for $7,500,000 and other assets which were sold
for $6,750,000.
The creditors totalled $16,350,000, and were made up of the
following amounts:
Secured creditor $9,000,000, receiver’s costs when realising
secured asset $150,000, liquidator’s expenses $600,000, unsecured
trade payables $2,400,000, tax payable $1,050,000, local government
rates $300,000, staff...