0370 270 6000

already registered?

Please sign in with your existing account details.

Sign in with LinkedIn

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Register with LinkedIn

Forgotten your password?

Home arrow Insights & events arrow Resources arrow Blogs arrow When is a debt not a debt? – how your claim is treated in an insolvency for voting purposes

When is a debt not a debt? – how your claim is treated in an insolvency for voting purposes

3 February 2011

It is frustrating enough when a company owing you money becomes insolvent, still more so when the amount for which you can vote is restricted when deciding whether or not a company’s proposals should be approved.

The treatment of a claim was recently considered in proceedings brought by HMRC against the administrators of Mercury Tax Group Ltd where the court gave some helpful guidance on how to deal with unliquidated and unascertained claims for voting purposes. Ascertained claims (usually debts) must be allowed in whole for voting purposes and marked objected too, even if they are disputed. These claims can be contrasted with unascertained claims where the insolvency practitioner estimates a minimum value for voting purposes. This judgment emphasises the point that creditors are better off arguing that their claim is ascertained (even if it is disputed in full) as their vote could make all the difference in whether proposals are approved.

Related opinions

Flexible working, childcare and indirect sex discrimination – important reminder

The courts have long recognised that, on a societal level, women bear a greater burden of childcare responsibilities than men which can make it more difficult for women to comply with employer requirements for flexible working (known as the ‘childcare disparity’).

View blog

Insolvency applicants: getting the basics right

A number of interesting developments have emerged from what was quite a run-of-the-mill insolvency application brought by a litigation funder assignee.

View blog

Corporate Insolvency and Governance Act 2020: update

When CIGA came into force over a year ago it turned the insolvency world on its head. It introduced never-before-seen measures to help companies deal with the immediate impact of the coronavirus pandemic and to provide new corporate restructuring tools to try to help companies survive and prosper.

View blog

Moratoriums

The new Part A1 moratorium was introduced partly in response to the Covid-19 pandemic and its impact on businesses. The moratorium is not intended to be used to simply delay the inevitable insolvency of a company, but rather to allow breathing space for that company to restructure and/or achieve an effective rescue.

View blog

View all blogs

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up

Quick links

Information

  1. bab
  2. Investors in people
  3. Lexcel
  5. Plain English Campaign Approved

Follow us...

© Copyright Browne Jacobson LLP 2021 - All rights reserved