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Northern Drilling is an oil-drilling company that has defaulted on several of its loans. Petrogiant Oil Refining is owed $230,000 on a loan that is secured by some of Northern Drilling's equipment.
This equipment is worth around $180,000. Petrogiant has repossessed the equipment pursuant to its security agreement and has notified Northern that it proposes to keep the equipment rather than sell it. Northern does not want Petrogiant to keep the equipment and wants it to be sold.
Discuss the legal issues in this situation.
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