Dealing with Leased Assets

Last modified 10:22, 5 Jul 2016

Overview

This section explains how to deal with assets subject to a lease, hire-purchase or other finance agreement.  The terms of the agreement will generally dictate how these assets may be dealt with.  This section assumes that you are able to realise the asset for the benefit of the creditors and account to the lessor for the sale proceeds.

We will refer to the finance company that owns the asset as the Lessor and Lessee as the insolvent entity.

Entering into an Arrangement with a Charge Holder

Using the Payout / Return facility, illustrates how most arrangements may be correctly entered into the system by using combinations of:

  • Entering the appropriate Amount Owing and Asset Values to ensure the resultant claims match the arrangements made with the charge holder.
  • Entering a payout amount.
  • Specifically entering the amount of the Proof of Debt and Amount Admitted to participate in a creditors’ distribution.

Subject to a controller’s obligations, the following may result from charge-holder arrangements:

  • Creation of a Secured Creditor claim
  • Creation of an Unsecured Creditor Claim
  • Creation of an Accounts Payable Entry

Related

Realising Leased Assets
Generally, if the net estimated realisable value of an leased asset exceeds the amount owing on the agreement, an appointee may agree with the Lessor to realise the leased assets and account to the Lessor for the sale proceeds, which includes payment to the Lessor for any liability under the agreement. In the following section, you will realise both single and multiple assets.  The examples are those entered in the section Entering Leased Assets.
Charged Asset Reports
Explains what the feature is or what its benefits are to the user or customer.
UNDO Disclaim / Payout
This section explains how to undo a disclaimed or paid out transaction.
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