SAFPL has a longstanding commitment to doing business in its local community.
SAFPL has a longstanding commitment to doing business in its local
community. As a result of booming sales in the United States, the company has some cash available for short-term investment. Rather than depositing it in the bank, SAFPL subscribes for unlisted unrated debentures issued by a local company called Bangzia Ltd. Bangzia has a number of shopfront “branches” in local towns that look a bit like bank branches; however, bangzia is not an authorized deposit-taking institution regulated by the Australian prudential regulation authority (APRA). Bangzia uses the money subscribed by investors to make high-risk loans to property developers. Shortly after SAFPL make its investment, Bangzia is placed into external administration. What rights if any does SAFPL have a debenture holder?