Parties 1 [Name of company in administration or liquidation] (in [administration OR liquidation]) (the Company) of [Company’s address] acting through [[individual's name] in his capacity as [Administrator OR Liquidator] of [the Company] of [Company’s address or Office-Holder’s address (if different)] (the Office-Holder) OR [individual's name] in his capacity as [Administrator OR Liquidator] of [name of company in administration or liquidation] (in [ administration OR liquidation ]) (the Company) of [Company’s address or Office-Holder’s address (if different)] (the Office-Holder)] 2 [creditor's name] of [creditor’s address] (the Creditor) Recitals (A) [On [date] a winding-up order was made against the Company on the petition of [name of the petitioner] presented to the court on [date] OR On [date], the Company entered administration]. (B) On [date], [Office-Holder’s name] was appointed as [ [Administrator] OR [ Liquidator ] ] of the Company. (C) The [Company OR Office-Holder] proposes to [continue proceedings against [details of defendant(s) in proceeding number [court number]] in the [name of court] court OR commence proceedings substantially in the form set out in the draft Particulars of Claim annexed hereto] (the Proceedings) and approached the Creditor to provide funding to

Restructuring & Insolvency analysis: This case confirms the extent to which the law of England and Wales favours creditors over debtors in the field of administration. Deputy Insolvency and Companies Court Judge Baister rejected the director’s challenge to the appointment despite the creditor’s failure to: (a) include a term by which the debenture could be enforced in the light of non-payment by the debtor; (b) wait the contractually required time to appoint administrators after making demand; and (c) draft appointment documentation that complied with the legislation. To paraphrase the judge: if an entrepreneur falls out with their finance provider, they can expect to lose control of their business. Written by Duncan Macpherson, barrister at 1EC barristers.

An office-holder may admit or reject a proof of debt, in whole or in part, for the purposes of dividend. If the office-holder rejects a proof, in whole or in part, the office-holder is required to deliver to the creditor a statement of the office-holder's reasons for doing so, as soon as reasonably practicable. This Practice Note considers a creditor’s remedy if their proof of debt has been rejected by an office-holder. For further reading on proving a debt, see Practice Notes: • Proof of debt • Rejection of proof of debt • Proof of debt—key cases Dissatisfaction of creditor If a creditor is dissatisfied with an office-holder’s decision on their proof of debt for dividend purposes (including any decision on the question of preference), the creditor may apply to the court for the decision to be reversed or varied. The application must be made within 21 days of the creditor’s receipt of the office-holder’s statement of reasons. It is critical that the creditor initiates an appeal if the proof

A creditor’s claim is a demand by a person or entity owed money (the creditor) for payment of a debt or other enforceable obligation from a debtor or an insolvent estate. In practice, it commonly refers to the proof of debt or statement of claim submitted in insolvency, bankruptcy or liquidation proceedings so that the creditor can participate in any distribution.The expression is descriptive rather than a defined statutory term, although related concepts (such as “proof of debt”, “claim in a winding up” and “bankruptcy debt”) are defined in insolvency legislation across the UK and Ireland.Key features include: identification of the legal basis of the debt (contract, judgment, statutory liability, guarantee, tort), the amount claimed (including interest and costs) and any security or priority rights. Creditor’s claims are subject to adjudication by the office-holder (liquidator, administrator, trustee in bankruptcy or official assignee).Usage is broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland, though procedural rules and terminology (for example, sequestration in Scotland and bankruptcy in Ireland) differ. Creditor’s claims are critical to ranking, voting in creditors’ meetings, and determining dividend entitlements in corporate insolvency, personal bankruptcy and deceased estates.

ARCHIVED: This Precedent has been archived (on the basis it is not required in respect of winding-up petitions presented from 1 April 2022) and is not maintained. WARNING • THIS NOTICE IS GIVEN PURSUANT TO SCHEDULE 10 TO THE CORPORATE INSOLVENCY AND GOVERNANCE ACT 2020 AS IT APPLIES FROM 1 OCTOBER 2021 • SHOULD YOU FAIL TO PAY THE SUM DEMANDED IN THIS NOTICE OR PROVIDE PROPOSALS FOR PAYMENT OF THE SUM DEMANDED WHICH ARE TO THE CREDITOR’S SATISFACTION, THE CREDITOR MAY, NOT EARLIER THAN 21 DAYS FROM

A creditor's petition is a bankruptcy petition made by a creditor of a debtor with the aim of obtaining a bankruptcy order against the debtor.

Creditor’s rights are the legal entitlements and remedies available to a person or entity to recover money or enforce obligations owed by a debtor. The expression is descriptive rather than a single defined term, and is used across insolvency, banking, commercial, property and enforcement law in England and Wales, Scotland, Northern Ireland and Ireland. Key creditor’s rights include: contractual rights to payment; rights to enforce security (such as fixed and floating charges, standard securities and mortgages); set‑off and netting; enforcement options such as execution, attachment, arrestment, charging orders and garnishee orders; and participation and priority in insolvency and restructuring procedures. Creditor’s rights are shaped by statute (for example, the Insolvency Act 1986, Bankruptcy (Scotland) Act 2016, Insolvency (Northern Ireland) Order 1989 and the Personal Insolvency and Companies Acts in Ireland), common law and equitable principles. Across the UK and Ireland, the concept is broadly consistent, though the mechanisms and terminology for enforcement and security differ significantly between jurisdictions. Understanding creditor’s rights is central to advising on lending, security packages, enforcement strategy, priority disputes and insolvency risk.

Restructuring and Insolvency analysis: The High Court has issued guidance on a range of issues, including (i) whether an administrator will be guilty of causing ‘unfair harm’ to unsecured creditors (within the meaning of paragraph 74 of Schedule B1 to the Insolvency Act 1986) by opting for a distributing administration rather than moving the company to liquidation, (ii) when it is necessary to put administrators’ proposals to unsecured creditors for approval, and (iii) when the court will be prepared to interfere with an administrator’s decision regarding which statutory objective of administration to pursue. Written in partnership with Eleanor Temple, barrister at Kings Chambers and counsel for the administrators.

means the committee formed by the Company’s Creditors to represent the interests of the Creditors as a whole [by an agreement dated [insert date]]

Bankruptcy in England and Wales is a process by which the court or the bankruptcy adjudicator adjudicates an individual bankrupt by making a bankruptcy order. While a company may go into voluntary liquidation without any involvement from the court, only the court or the bankruptcy adjudicator can make an individual bankrupt. The bankruptcy procedure available to a debtor’s creditors has its own prescribed process, which includes (in some cases) its own pre-action procedure (the statutory demand), and is conducted under the Insolvency Act 1986 (IA 1986) and Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The Practice Direction on Insolvency Proceedings (PDIP) also applies. Types of bankruptcy petition and who can present one • creditor’s petition—any creditor (either on their own, or jointly with other creditors) who is owed a liquidated and undisputed debt or debts equal to or more than the bankruptcy limit (which, for bankruptcy petitions presented on or after 1 October 2015 is £5,000—for bankruptcy petitions presented prior to that date, the level was £750) can present a creditors'

Formal creditors' committees in formal insolvencies (administration, liquidation, receivership and bankruptcy) Formal creditors' committees are often formed in large or complex formal insolvencies and are often consulted by the relevant office holder on key issues as they provide a useful sounding board. Generally, there will be between three and five members in a committee, usually consisting of the creditors with the largest exposure to the company and so greatest interest in the conduct of the insolvency proceedings. Each member of the committee has one vote and an odd number of committee members is usually chosen to avoid any deadlock on voting. Committee members can usually claim reimbursement for their reasonable expenses in attending creditors' meetings. Most committees will focus on review and approval of the office holder's fees and remuneration. If a creditor's claim is

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 provide a scheme for decision-making in all insolvency procedures. While decision-making is dealt with in IR 2016, SI 2016/1024, Pt 15, company voluntary arrangements (CVAs) are dealt with in IR 2016, SI 2016/1024, Pt 2. For information on decision-making generally, see Practice Note: Voting and creditors' decision procedures. Creditor claims There is no statutory definition of the term ‘creditor’ in Insolvency Act 1986 (IA 1986) or IR 2016, SI 2016/1024 for the purpose of a CVA. In respect of individual voluntary arrangements (IVAs), the terms ‘debt’ and ‘liability’ are each defined so as to cover ‘debts or liabilities which are present or future, certain or contingent or in respect of an amount which is fixed or liquidated or is capable of being ascertained by fixed rules or as a matter of opinion’ with the term ‘creditor’ being defined with reference to the term ‘bankruptcy debt’. In the context of CVAs, the term ‘creditor’