| Commentary

10.4 Powers of the court

| Commentary

10.4 Powers of the court

If the transaction is impeachable as a transaction at an undervalue1 or a preference2, the court has wide powers to intervene3. Of particular significance to the lender are the court’s ability to:

  1. 10.4.1

        release or discharge (in whole or part) any security given by the company4; and

  2. 10.4.2

        provide for any surety or guarantor whose obligations to any person were released or discharged (in whole or part) under the transaction to be under such new or revived obligations to that person as the court thinks appropriate5.

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