Legal Question in Business Law in Bangladesh
Bank-1 filed charge on fixed & floating assets of a company on 2004, Bank-2 filed charge on fixed & floating assets of the company on 2006, Bank-3 filed charge on fixed & floating assets of the company on 2007. So, Bank 1, Bank2 & Bank3 has 1st ranking, 2nd ranking, 3rd ranking charge respectively. Now, all the 3-banks have entered into a pari passu agreement. Is this legally enforcable? or all the 3-banks have to file satisfaction and they have to file deed of hypothecation jointly with symulteneous pari passu agreement among themselves. Please reply
1 Answer from Attorneys
What is the status of the company? Usually creditors are free to decide if they want to subordinate their debts. Whether the company has gone into liquidation and the liquidator will honour the arrangement is a different issue( there cannot be any conflict with the insolvency laws). If by legally enforceable you mean between the creditors, yes.
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