Pledgees with rights to a pledge of chattels are not obliged to deliver the pledged assets to the liquidators. Provided there is no moratorium in the composition agreement that prevents them from doing so, they are entitled to liquidate the pledges of chattels within what they deem to be a reasonable time by debt enforcement proceedings to realise a pledge or if they were entitled to do so in terms of the pledge agreement, to sell the pledged asset by private sale or on the stock market.
However, if the interests of the estate require that a pledge be realised, the liquidators may set the pledgee a deadline of at least six months within which he must realise the pledged asset. At the same time, they shall request him to deliver the pledged asset to them if the deadline set for realisation expires without the pledged asset being sold, warning him of the criminal penalties (Art. 324 no 4 SCC1) and that his preferential right will expire if he fails to deliver the pledged asset without justification.