First lien creditors sought support for their breach allegations in various ICA provisions, certain of which directly curtailed second lien creditor action in an insolvency context.
During 1998-99, when, in quick succession, PAL was hard hit by the Asian financial crisis, strikes by pilots and ground-crews, and creditor action, it was Mr Tan who kept the airline afloat.
It works like a check list to confirm that you have the authority to transfer property to the trust, that transfers aren't going to make you insolvent, that you don't intend to defraud any creditors and you don't know of any pending creditor action against you (or you disclose it).
"The purpose of this notice is to provide a moratorium against potential creditor actions.
With elections on May 6, the authorities are eager to show foreign creditors that action is being taken to stamp out the corruption that contributed to Greece's dysfunctional state.
This would ensure that people struggling with debts get protection from additional fees, charges and creditor enforcement action for a temporary 12-month period to stop worsening debts and recover control of their finances.
Before one goes through the bother of determining whether a voidable transaction has taken place, the preliminary determination should be made as to whether the creditor's action is even viable due to the passage of time.
Of course, this can provide what amounts to a complete defense against the creditor's action if the value given by the transferee meets or exceeds in value that given by the debtor in making the transfer or incurring the obligation, i.e., if REV is present, then the transaction should not be avoided.
The move will protect both the company and other creditors from potential action by bondholders to push it into insolvency.
CVAs allow companies to continue trading and prevent creditors from taking action to recover debts until the agreement ends – either through completion or failure.
