A business went bankrupt over 18 months ago. The business included the property which was put on the market. The main creditors are the ATO, council and a first mortgage and they jointly initiated the bankruptcy. The bankruptcy is in the hands of a trustee.
I have made a low offer on the property only to be told that the trustee can not sell at a price which will not cover the debts. (I am not very worried about the ATO getting only 80 cents in the dollar!!!!) My offer has been on the table for 4 months and still current.
The trustee has said that it has a responsibility to hold onto the property until an offer is made that will clear the debts or it may be held liable for the outstanding debts. Or eventually the council may press the matter and force the sale under their powers. Meanwhile the business is still operating and the property is accruing council rates etc.
Is there a requirement that the trustee only sell the property if they can cover the debts? Can the creditors agree to accept a lesser amount to finalise the estate? Any comments?
Stirling
I have made a low offer on the property only to be told that the trustee can not sell at a price which will not cover the debts. (I am not very worried about the ATO getting only 80 cents in the dollar!!!!) My offer has been on the table for 4 months and still current.
The trustee has said that it has a responsibility to hold onto the property until an offer is made that will clear the debts or it may be held liable for the outstanding debts. Or eventually the council may press the matter and force the sale under their powers. Meanwhile the business is still operating and the property is accruing council rates etc.
Is there a requirement that the trustee only sell the property if they can cover the debts? Can the creditors agree to accept a lesser amount to finalise the estate? Any comments?
Stirling
