Did You Know?
Are you owed money by a company in administration, receivership or liquidation?
Become an informed creditor.
BACKGROUND
Understanding some interesting facts about insolvencies in Australia puts creditors in an informed position when making decisions relating to their claims.
Did you know?
It is not uncommon for creditors to have to wait years for a financial conclusion to their claim.
A 2022 study of Australian insolvencies showed that the median duration of a winding up since 2008 was approximately 2 years
[‘Promoting an optimal corporate rescue culture in Australia: The role and efficacy of the voluntary administration regime’, Harris, Jason Robert, 2022]
Did you know?
It is not uncommon for creditors to receive much less than what they are owed by an insolvent company. The recovery received can be highly uncertain, with numerous factors at play.
The value of the insolvent company’s assets is often severely reduced in an insolvency.
A sample of insolvencies showed that 87% of all Australian company administrations see a return of 30c in the dollar, or less
[‘Promoting an optimal corporate rescue culture in Australia: The role and efficacy of the voluntary administration regime’, Harris, Jason Robert, 2022]
Did you know?
Unsecured creditors are typically ranked last in priority to have their claims paid during insolvency.
The claims of priority creditors (such as administrators’ fees, legal fees and employee entitlements) will always rank ahead of unsecured claims. Secured creditors such as banks can also diminish any returns available to unsecured creditors.
This exposes unsecured creditors to the risk that their creditor claim is not paid (either fully or partially), if there are no funds remaining after paying higher priority claims.
HOW CLAIMCLOUD CAN HELP
ClaimCloud buys the claims of creditors that are owed money by insolvent companies. You can receive partial payment for your claim and end the waiting and uncertainty.
The process is simple.
The process is quick.
Contact us today to receive a live price for your claim.
In ascertaining a price for your claim as creditor, ClaimCloud considers a combination of factors including:
- expected recovery;
- risk;
- estimated duration of the insolvency; and
- other circumstances that may be specific to each claim.
As a creditor you will be asked for information including details of your claim (such as invoices, proof of debt, loan agreement or other contracts/ documentation). You will also be asked for a proof of identification, payment details for the transfer of the purchase price to you and other relevant information.
The final payout determined at the conclusion of the insolvency could be more or less than the amount paid by ClaimCloud to acquire your claim. Once you have sold your claim to ClaimCloud, you will have no further rights in respect of that claim.
You should obtain independent professional advice prior to selling your claim to ClaimCloud.
WHAT’S NEXT
Contact ClaimCloud today for the assessed value of your claim. We can begin the process of purchasing your claim as soon as you agree to move forward.
Is it time to put this chapter behind you? We are happy to help so call, email or text if you’d like more information.
Any information provided by ClaimCloud is not intended to constitute any financial or investment advice. Before you consider selling any claim you have to ClaimCloud, you should consider obtaining financial, tax and investment advice that takes into account your financial circumstances, objectives and needs. You should also consider any information from or published by the company you have a creditor claim with or any appointed administrators or liquidators that may impact your creditor claim.
+61 484 637 711 +1 808 465 5608 mitch@clmcld.com