Features of simplified liquidation proceedings

• Author: United Nations Commission on International Trade Law
• Pages: 21-25

Section one. UNCITRAL Legislative Recommendations on Insolvency of Micro- and Small Enterprises 21

Prompt notice of denial of claims or subjecting them to

a special scrutiny or treatment

323. Where the claim is to be denied or subjected to a special scrutiny or treat-

ment, the insolvency law providing for a simplied insolvency regime should

require the competent authority to give prompt notice of the decision and the

reasons for the decision to the creditor concerned, indicating the time periodwithin

which the creditor can request review of that decision. (See recommendations177

and 181.)

Treatment of disputed claims

324. e insolvency law providing for a simplied insolvency regime should

permit a party in interest to dispute any claim, either before or aer admission,

and request review of that claim. It should authorize the competent authority or

another competent State body to review a disputed claim and decide on its

treatment, including by allowing the proceeding to continue with respect to

undisputed claims. (See recommendation 180.)

Eects of admission

325. e insolvency law providing for a simplied insolvency regime should

specify the eects of admission of a claim, including entitling the creditor whose

claim has been admied to participate in the simplied insolvency proceeding, to

be heard, to participate in a distribution and to be counted according to the amount

and class of the claim for determining sucient opposition and establishing the

priority to which the creditor’s claim is entitled. (See recommendation 183.)

J. Features of simplied liquidation proceedings

Decision on a procedure to be used

326. e insolvency law providing for a simplied insolvency regime should

require that the competent authority, aer commencement of a simplied

liquidation proceeding, should promptly determine whether the sale and disposal

of the assets of the insolvency estate and distribution of proceeds to creditors will

take place in the proceeding: