When court issues an order for sale of the property what should you do?
[My company has been in arrears on its commercial property loan for 10 months, and the court has issued a court order for sale. Is there still a chance?] Recently, a business owner asked me this question.
"My company (Sdn. Bhd.) has not repaid its commercial property loan for 10 consecutive months, and the bank has obtained a court order for sale. Is there no way out?"
The answer is: Not necessarily.
However, it's important to understand that time is running out.
Once the bank has obtained a court order for sale, it means they have completed most of the legal procedures. The next step is usually to appoint an appraiser and auctioneer and arrange a public auction of the property.
Many people mistakenly believe that once the court issues an order for sale, the property immediately belongs to the bank.
This is not the case.
Before the auction is completed, ownership of the property still belongs to the company. In other words, during this period, as long as a reasonable solution can be proposed, there is still a chance to resolve the issue.
Generally speaking, businesses can consider a few directions:
First, negotiate with the bank as soon as possible.
If the company remains operational or can propose a concrete repayment plan, some banks are willing to reassess and restructure the loan or extend the repayment period.
Second, seek refinancing.
If the company still has the means to raise funds, it can consider repaying the original loan through other financial institutions to terminate the auction process.
Third, negotiate a private sale with the bank.
Public auctions often result in prices below market value. If a buyer can be found before the auction, and the property is sold at a more reasonable price, not only can losses be reduced, but the risk of a future debt shortfall can also be mitigated.
Most importantly:
If the proceeds from the auction are insufficient to cover all loan payments, interest, legal fees, and auction costs, the bank still has the right to pursue the remaining debt from the company.
If the directors or shareholders initially signed a personal guarantee, the bank may further pursue the guarantor for the remaining balance, and even apply for enforcement of personal assets.
Therefore, what many companies truly lose is not the property itself, but rather the missed golden opportunity to negotiate with the bank.
In reality, many business owners, thinking "I'll wait a bit longer" or "the bank won't auction it off so quickly," keep delaying until the auction notice is published, only to find their options dwindling.
Businesses experience ups and downs; encountering financial difficulties isn't terrible; what's terrible is avoiding them.
The sooner you seek assistance from professional legal, financing, and property advisors, the better your chances of preserving assets, minimizing losses, and even getting your business back on its feet.
Remember this:
A court auction order doesn't necessarily mean the end; but continued delays could very well be the beginning of asset loss.
Friendly Reminder: It's best not to delay bank loans or jeopardize your CCRIS report, as this will affect the bank's credit assessment.
【公司拖欠银行商业产业贷款10个月，法院已发出拍卖令(court order)，还有机会吗？】近日，有一位老板问我这个问题。
「公司（Sdn. Bhd.）已经连续10个月没有偿还商业产业贷款，银行已经取得法院拍卖令，是不是就没有办法了？」
答案是：未必。
但是，必须明白一点, 时间已经进入最后阶段。
当银行已经取得法院拍卖令（Order for Sale），代表银行已经完成大部分法律程序，下一步通常就是委任估价师、拍卖师，并安排产业公开拍卖。
很多人误以为，法院发出拍卖令后，产业就立刻属于银行。
其实并不是。
在拍卖成交之前，产业的拥有权仍属于公司。也就是说，在这段期间，只要能够提出合理方案，仍然存在解决的机会。
一般而言，企业还有几个方向可以考虑：
第一，尽快与银行协商。
若公司仍有经营能力，或能够提出具体还款计划，部分银行愿意重新评估重组贷款或延期安排。
第二，寻找再融资（Refinancing）。
如果公司仍具备融资条件，可考虑透过其他金融机构偿还原有贷款，以解除拍卖程序。
第三，与银行协商进行私人出售（Private Sale）。
公开拍卖往往成交价格低于市场价值，若能在拍卖前找到买家，以较合理价格出售产业，不但有机会减少损失，也能降低未来出现债务差额（Shortfall）的风险。
最值得注意的是：
如果拍卖所得不足以偿还全部贷款、利息、律师费及拍卖费用，银行仍有权向公司追讨剩余欠款。
若当初董事或股东签署了个人担保（Personal Guarantee），银行更可能进一步向担保人追讨余额，甚至申请执行个人资产。
因此，很多企业真正失去的，并不是产业，而是错过了与银行谈判的黄金时间。
现实中，不少老板因为抱着「再等等」「银行不会那么快拍卖」的心态，一拖再拖，直到拍卖公告刊登后，才发现可选择的方案已经越来越少。
企业经营有起有落，遇到财务困难并不可怕，可怕的是逃避面对。
越早寻求专业法律、融资及产业顾问的协助，越有机会保住资产、降低损失，甚至让企业重新站稳脚步。
记住一句话：
法院拍卖令，并不一定代表终点；但若继续拖延，很可能就是企业资产流失的开始。
爱心提示：
最好不要拖延银行贷款，不要搞花你的CCRIS 报告，因为将影响银行对你的信誉评估。
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