Rich Pte Ltd has gone into insolvent liquidation. The company has a factory in Singapore. Beng owns 10,000 ordinary shares in Rich Pte Ltd, which are paid up to 50%. The company owes;(i) $130,000 in unpaid wages to employees,(ii) $200,000 in respect of goods bought on credit,(iii) $1 million to a bank supported by a fixed charge over the land on which the factory is built.Required:

(b) Explain the order of priority for payment of the debts owed by Rich Pte Ltd. (7 marks)