Winding Up

Where the winding up expense were utilized to preserve the mortgaged assets which were to be realized by the secured creditors outside the winding up, then secured creditors (financial institutions) were required to bear the winding up expense to manage and preserve those assets till same were realized by the secured creditors as they would be the ultimate beneficiary of such assets exclusively

Secured creditors (financial institutions) may remain outside the winding up and proceed entirely on the basis of their mortgage property, however, they would have to reimburse all the expenses incurred including remuneration of the Official Liquidator, for the management and preservation of the charged properties in favour of secured creditors

However, for future, they may appoint their own staff and employees to preserve and safeguard their mortgage securities from their account at their own risk to avoid winding up expense incurred by Official Liquidator.

Question as to whether option of remaining outside the winding up and realizing security would be available to the secured creditors in respect of assets under floating charge of hypothecation.