SECTION U - LIQUIDITY PROBLEMS

If it was necessary to provide urgently needed cash (or liquidity) to enable the business of an insolvent corporate borrower to survive, how could a financier who was willing to provide this "new money" be protected and given priority over other existing creditors?

For this purpose, a consensus will be required amongst all creditors, so that a first exclusive charge could be created on certain segregated assets, and especially on the assets (such as current assets and receivables) created by the new facility. For the said purpose, a return of modification of charge will also be required to be filed with the Companies Registrar.