Does a controller deal with unsecured creditors?
No. The only requirement for a controller over company assets is to lodge a report with ASIC that may be accessed by unsecured creditors. They are legally not concerned with unsecured creditors or their debts. It is common for controllers to keep unsecured creditors informed from time to time. However, the controller’s role is purely to benefit of the secured creditor. The only exception is that, in some circumstances, the controller may have to deal with the creditor’s outstanding employee entitlements.
