Commercial Law, 2022 Bar — Question 11

ESSAY

Kau Corp. had suffered tremendous losses as a result of the COVID-19 pandemic and the resulting economic slump. From a calculation of its assets and liabilities, Kau Corp. was technically insolvent, but management believed that it had the chance to survive if its rights to mineral properties could be exploited. Kau Corp. has the rights to several parcels of land containing nickel deposits. Nickel prices had gone up in the world market and nickel was in short supply. The creditors of Kau Corp. are set to file suits for collection with application for writs of attachment. As the counsel for Kau Corp., what legal action would you take to avert the suits and stave off insolvency and liquidation? Explain briefly.

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