Reference no: EM133499913

Question: Scottish tour ltd is an australian travel company which arranges holiday tour packages to the Scottish highlands. The company directors are jock, Angus and Bonnie and its most popular tour takes tourists around loch Ness, home of the legendary Loch Ness monster. Scottish tour is gradually rebuilding its customer base and finances after various international lockdown over 2020-2021 due to the COVID-19 pandemic.

The company however has faced controversy over the last 6 months and a downturn in customer due to some bad publicity about its tours.An Australian news program ran a lengthy story on Scottish tours, leading to dozens of customers cancelling their holiday packages. on one Loch Ness tour, the boat engine failed and its 100 terrified passengers had to wait 2 hours to be rescued. On another couple of tours one of the tour boats sank resulting in several tourist being hospitalised with hypothermia.

In light of these problems, Jock,Angus and Bonnie decide to hold a board meeting. Bonnie is the company's accountant and she tells Jock and Angus thta the Company cannot pay many of its debts and that many of its creditors have contacted her demanding their debts to be paid. In particular she tells them that the company has missed several repayments on its mortgages to ABC bank Ltd and that none of the company's suppliers have Been paid in months. She also tells them that there are various unpaid unsecured loans to the MNO Bank ltd and none of the company's employee have been paid their superannuation and holiday entitlement for months.