When your company goes into liquidation, it can be a trying time. This is a time of uncertainty for everyone involved. During this time, creditors will have rights that you may not realize. Some of the rights they have include access to documents that will assist in helping stakeholders understand what is happening. Documents may also let creditors understand what the chances are of them recovering what is rightfully theirs. Principle Insolvency is here to talk about some of the documents that creditors may have access to when a company enters into liquidation.
Documents Creditors Will Have Access to During a Liquidation
These are some of the documents that creditors will be entitled to.
– Notice of Appointment: This is paperwork that documents the company entering into liquidation. It will include helpful details including the date, time and details of who made the appointment. Included in this paperwork will be the contact information for the liquidator.
– Statement of Affairs: This will provide creditors with a clear picture of the company’s assets as well as their liabilities.
– Liquidator’s Reports: The liquidator’s reports will include a lot of helpful information. Inside these documents creditors will be able to see the proposal for how the liquidation will be managed, of list of the creditors, and an estimated timeline of completion. Every six months a new report will be generated and then a final report once the process is complete.
– Meeting Notices: Sometimes, there are meetings held by the creditors. If this happens, the creditors will get the agendas as well as the minutes from these meetings.
– Summary Reports: It is required for practitioners to disclose recoveries, any fees charged, and how the funds are distributed. They will be distributed between secured, preferential, and unsecured creditors.
– Conflict of Interest Disclosures: If there are any conflicts that arise, practitioners will have to document it to include how these conflicts are being managed.
– Company Records: Liquidators are allowed to share company records with creditors as well. This is going to be at the discretion of the liquidator though. Before sharing these documents, liquidators will often consider the reasoning for the request before they simply turn them over. Most of the time, these documents are going to include information about progress in selling assets, litigation, and expect disruptions to the process.
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When a creditor isn’t getting the documents requested by the liquidator, they have the ability to apply for them through the court system. The court will likely review the documents and take a look at to they are being requested in the first place. If your company is facing liquidation, you can turn to Principle Insolvency to help you navigate the process. We will lay out your options in detail so that you can move forward in whatever way suits your company best. You can rely on us to have your best interest at heart. Call us today!